Donald Trump's 25% tariff hits auto sector: Tata Motor's JLR, Tesla's Indian supplier crash
The 25% tariffs on cars and light trucks imported into the US will start on April 2, while tariffs on auto parts will take effect on May 3.
India's Tata Motors and the country's auto parts makers that supply Tesla, among others, dropped on Thursday after US President Donald Trump announced plans for 25% tariffs on all imported cars and auto parts.
Tata Motors slid 5%, while Tesla's biggest Indian supplier, Sona Comstar, dropped over 4%, leading to a 1.2% drop in the auto sector in the world's third-largest auto market.
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The 25% tariffs on cars and light trucks imported into the US will start on April 2, while tariffs on auto parts will take effect on May 3. The news rocked the auto sector globally, with Tesla CEO Elon Musk saying the impact on the EV maker is "significant."
The US is a top destination for Tata Motors-owned Jaguar Land Rover's (JLR) luxury cars, which are imported from plants in the UK and Slovakia.
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Among other stocks, Samvardhana Motherson, India's biggest auto parts supplier, fell over 2%, while Bharat Forge, which also supplies Tesla, was down 0.4%.
The US, Samvardhana's top market, along with India, accounts for 20% of its total revenue. North America, led by the US, forms a steeper 40% of Sona Comstar's revenue.
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The day's decline also mirrors share moves of larger global carmakers, from Toyota and Hyundai to Stellantis and Ford, all of which fell after Trump's announcement.
