Tata Motors Shares Plunge 8% After JLR Halts U.S. Exports Amid Tariff Hike
Indian car behemoth Tata Motors' shares plummeted 8% on Monday following the move by its luxury unit, Jaguar Land Rover (JLR), to halt exports of British-made cars to the United States. The move comes after the imposition of a 25% tariff by U.S. President Donald Trump heavily affected the automaker's business.
The latest drop puts Tata Motors' overall share fall at 20% since the tariff declaration on March 26. By comparison, India's benchmark Nifty 50 index has lost 6% over the same time, dropping 4% on the day.
The United States is a major market for British auto manufacturers, with the second-highest import share after the European Union, totaling almost 20% of all exports, the Society of Motor Manufacturers and Traders (SMMT) data shows.
JLR, which produces luxury brands such as Range Rover Sport and Defender, had earlier picked the U.S. as one of its only expanding markets during the last year. The nation accounts for more than a quarter of JLR's global sales, making the new tariff a serious blow to its revenue forecasts.
The slowdown in U.S. exports is a major setback for JLR and its parent Tata Motors, as they now have to deal with the uncertain global trade scenario and look for alternative plans.
