1 day Ago
Shares of Tata Motors Ltd ., Samvardhana Motherson Ltd., and Sona BLW Ltd.
will be in focus on Tuesday, April 15, after the latest statement made by US President Donald Trump on auto tariffs. US President Donald Trump announced on Monday that he is looking to "help some of the car companies," as these companies need a "little bit more time" to move their production to the US. “I’m looking for something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time because they’re going to make them here,” Trump said without elaborating on the potential plans.
The news had sent shares of US car companies like General Motors, Ford and Chrysler-parent Stellantis higher by up to 6%. Shares of Asian automakers like Toyota, Kia and Honda have also surged this morning. Mexico and Canada currently contribute to 30% to 60% of the vehicles sold in the US.
30% to 40% of vehicles sold by General Motors and Toyota in the US, are produced in Mexico and Canada, while 60% of Volkswagen vehicles, sold in the US, are produced in those countries. Mexico contributes around 4% of Samvardhana Motherson's revenue, while for Sona BLW, that figure is around 2%. The 25% auto import tariffs announced by the Trump administration are still in place.
In response to this, Tata Motors' unit Jaguar Land Rover has stopped shipments to the US for the month of April. Shares of Tata Motors ended 2.2% higher on Friday, continuing their rebound after having made a new 52-week low.
Shares of Samvardhana Motherson ended 4.6% higher on Friday, but have nearly halved from their 52-week high. Sona BLW's shares also ended nearly 6% higher on Friday and have also corrected significantly from their 52-week high.
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