Tata Motors Trades In Red for 2nd Day Amid $4.4 Billion Iveco Deal And U.S. Tariff Worries - Should You Buy?

Tata Motors shares continued to decline for the second straight day on Thursday, July 31, 2025, dropping by 2.45% to hit an intraday low of Rs 652.05 on the BSE. Investors appeared concerned about the company's decision to acquire Italian truck manufacturer Iveco Group for €3.8 billion (around Rs 38,240 crore), excluding its defence business. Shares were also in red as US imposed 25% Tariff on India which will impact the stock and the auto sector.

Share Price Movement:

Tata Motors is trading at Rs 666.25, marginally down by 2.15 points or 0.32% at 3 PM. The stock opened the session lower at Rs 660, compared to the previous close of Rs 668.40, and declined further during the day to reach at Rs 652.05. Technically, Tata Motors' stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, a sign of continued weakness.

The stock has a 52-week high of Rs 1,176.30 and a low of Rs 542.55. The company's current market value stands at Rs 2.45 lakh crore.

Iveco Acquisition By Tata Motors:

Tata Motors announced that it will acquire all common shares of Iveco Group in an all-cash public tender offer, excluding its defence segment. The deal values at €3.82 billion (roughly Rs 33,360 crore), with Tata offering €14.10 per share for 27.2 crore outstanding shares, according to the exchange filing. This will be Tata Motors' largest-ever acquisition in the auto sector, surpassing its purchase of Jaguar Land Rover in 2008 for $2.3 billion.

The move is aimed at boosting Tata's commercial vehicle (CV) business with better technology and expanded global access. The CV arm is also expected to be listed independently in the near future.

"This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basiswith two strategic home markets in India and Europe" said Natarajan Chandrasekaran, Chairman, Tata Motors, commenting on the transaction as reported by PTI.

U.S. Tariffs Add to Investor Concerns:

Investor sentiment was also affected by former U.S. President Donald Trump's surprise announcement of a 25% tariff on all Indian imports, effective August 1. The move has raised concerns across export-driven industries, including automotive and pharmaceuticals.

Although Indian auto exports are largely exempt from these tariffs under Section 232 of U.S. trade laws, experts say companies could still be impacted by changes in global demand and market volatility. "Auto components remain vulnerable to shifts in U.S. demand cycles," noted a Nomura report.

Tata Motors Stock Outlook:

"Tata Motors is on the verge of breaking down below the major support zone of 620-660. A sustained move below this critical area will likely trigger further downside, with the next major support placed around 608.
The current structure appears weak, and unless buyers step in decisively, the breakdown could gain momentum.

On the flip side, a bullish setup will only emerge if the stock manages to reclaim and sustain above the 700 mark. Until then, the bias remains negative with increased risk of further selling pressure," said Anshul Jain, Head ff Research at Lakshmishree Securities.

Disclaimer
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