Tata Motors share price surged on Monday, May 5, 2025, following reports that its luxury car unit Jaguar Land Rover (JLR) had resumed exports to the United States. The company’s shares rallied 2.4% to hit an intraday high of ₹667.5 per share on the BSE. At 12:30 PM, Tata Motors shares were trading at ₹661.5 per share, up 1.5%, outpacing the 0.34% rise in the benchmark BSE Sensex index.
Background on JLR’s Exports to the US
JLR, a wholly-owned subsidiary of Tata Motors, had paused shipments to the US after the Trump administration imposed a 25% tariff on automobile imports effective April 3, 2025. However, the company appears to have restarted exports as Trump indicated potential relief measures for the sector. The US is a significant market for JLR, accounting for 23% of its total revenue and 26% of its wholesale volumes in FY24.
Reaction and Market Impact
A JLR spokesperson stated, “The US is a key market for our luxury brands. As we work to address the new US trading terms with our business partners, we are enacting our planned short-term actions, as we develop our mid- to long-term plans.” Tata Motors shares have recovered 12.4% on the BSE since hitting a low of ₹579.85 per share after the tariff announcement. Despite this recovery, the shares remain nearly 45% below their 52-week high of ₹1,179 per share.
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The market capitalisation of Tata Motors stood at ₹2.436 trillion at the time of writing. The company’s decision to resume exports to the US reflects its commitment to maintaining a presence in a key market despite trade challenges.
