The broader Nifty Auto index climbed 0.6% on Thursday, monitoring a worldwide uptick in automotive shares after america signed a landmark commerce settlement with Japan this week. The US–Japan deal slashed tariffs on Japanese automotive exports to the US from 25% to fifteen%, triggering a rally in international auto markets and fuelling hypothesis of additional commerce pacts.
Reviews counsel that Washington is now near finalising the same settlement with the European Union, which might see tariffs on automotive imports lower to fifteen% from the present 27.5%. The reviews indicated that the EU might comply with this levy to keep away from the 30% tariff hike threatened by US President Donald Trump from August 1.
Implications for Tata Motors and JLR
For Tata Motors, whose luxurious arm Jaguar Land Rover (JLR) operates a key plant in Slovakia, a discount of U.S. tariffs to fifteen% might considerably profit exports. About 33% of JLR’s volumes come from the U.S. market. The U.Ok., which is not a part of the EU, already enjoys a ten% tariff underneath its separate US–UK commerce association.
Shares of Tata Motors have fallen 6.5% to this point in 2025. The inventory is down 4.6% over the past six months however has gained 4.8% within the final three months. The inventory is up 4% within the final one month.
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