Tata Motors Share Price: The Tata Group-backed automobile giant, Tata Motors share price took a massive hit during the current week's trading session due to Trump's tariff on imported auto products. Tata Motors' luxury car brand Jaguar Land Rover (JLR) has significant exposure in the US market, and the new tariff comes as a drawback, which dampened investors' sentiment in the large-cap stock.
Tata Motors Share Price:
After market hours of April 4th, Tata Motors share price stood at Rs 613.85 apiece, down by 6.2% on BSE with a market cap of Rs 2,25,979.59 crore. The stock is now about Rs 7.65 away from hitting its 52-week low of Rs 606.20 apiece, while it dropped significantly from its 52-week high of Rs 1,179.05 apiece.
In the past five trading sessions, Tata Motors stock dropped by nearly 9% on BSE, emerging among the biggest losers of Sensex.
How Trump's Tariff Could Impact the Auto Sector?
Karthick Jonagadla, smallcase manager and Founder & CEO of Quantace Research highlighted that auto exports reached $5.72 billion in FY24 (27% of the sector's total). He added, "now contending with an existing 25% tariff on auto parts, which threatens established supply chains and cost structures."
Meanwhile, CareEdge's report said, "Overall exports of auto and auto components to the US are very low, and accordingly, the impact of reciprocal tariff is expected to be minimal for the sector as a whole. Additionally, auto component exports to the US are crucial for OEMs in the US, and it may take time for them to replace these with other low-cost, approved vendors from other nations, thereby improving India's ability to mitigate the impact of higher tariffs in the short to medium term."
CLSA Rating On Tata Motors:
Global brokerage CLSA has downgraded its rating on Tata Motors from its earlier 'High Conviction' stock list. Now, CLSA trimmed its stance to just 'Outperform', while cutting target price by approximately 18% to Rs 765 per share. Earlier, the target price of Tata Motors was of Rs 930 apiece.
According to CLSA's note, the 25% tariff from US on imported auto products, along with discontinuation of the Jaguar models, will push JLR's volumes down by at least 14% YoY for FY26. This could impact Tata Motors EBIT margins, lower by 7% in FY26.
CLSA trimmed JLR's EBITDA for FY26, but expects free cash flow to be positive during 2026 and 2027 financial year.
Notably, Tata Motors sales in the domestic & international market for Q4 FY 2024-25 stood at 252,642 units, compared to 265,090 units during Q4 FY 2023-24. In Q4FY25, the company's passenger vehicle sales stood at 146,999 units, down by 6% YoY. Also, its commercial vehicle sales dip by 3% YoY to 105,643 units.
As per Trendlyne data, the consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. The average target price is Rs 842.73 apiece, hinting at over 37% potential upside in Tata Motors ahead.
Going ahead, another key factor to monitor will be Tata Motors demerger of business into 1:1 ratio. Under the split deal, the company's demerger will be of two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity. As part of the demerger plan, Tata Motors shareholders will get 1 share of TMLCV with a face value of Rs 2 each for every 1 share held in the company. This makes the business split ratio 1:1.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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