Tata Motors shares fall 3 pc as higher tariffs on automobiles come into effect

     New Delhi, Apr 3 (PTI) Shares of Tata Motors declined by 3 per cent on Thursday as higher tariffs on foreign-made automobiles announced by the Trump administration on March 26 came into force.
     These US tariff hikes have come into effect from midnight on April 3.
     Tata Motors shares fell by 2.64 per cent to close at Rs 654.05 apiece on the BSE.
     According to a release by the White House, "... steel/aluminium articles and autos/auto parts already subject to Section 232 tariffs" and hence exempted from the Liberation Day announcements made by US President Donald Trump.
     However, the auto parts tariff will be imposed no later than May 3, 2025.
     The tariff will apply to imported passenger vehicles -- sedans, SUVs, crossovers, minivans, cargo vans -- and light trucks, as well as critical auto parts, engines, transmissions, powertrain components, and key electrical parts.
     Tata Motors Ltd is the parent company of British passenger vehicle maker Jaguar Land Rover (JLR). The United States is a key market for JLR as nearly one-third of its sales in 2024 came from the US market.
     Meanwhile, the tariff hikes have adversely affected shares of other auto and ancillary companies, with Sona BLW Precision Forgings declining 3.52 per cent to close at Rs 450 apiece, Balkrishna Industries by 3.23 per cent to settle at Rs 2,481.45, and Bharat Forge by 2.89 per cent to Rs 1,119.10 on the BSE.
     In addition, shares of Samvardhana Motherson International fell 2.46 per cent to end at Rs 128.95 apiece, Bajaj Auto by 1.95 per cent to close at Rs 7,913.65, Mahindra & Mahindra by 0.95 per cent to settle at Rs 2,612.55, HeroMoto Corp by 0.88 per cent to conclude at Rs 3,748.80, and TVS Motor Co by 0.74 per cent to finish at Rs 2,476.50.
     However, Ashok Leyland shares rose 0.57 per cent to close at Rs 209.95 and Eicher Motors went up 0.44 per cent to finish at Rs 5,376.20 per piece on the BSE.
     The 30-share BSE benchmark declined 322.08 points, or 0.42 per cent, to close at 76,295.36.
     India's auto components export to the US stood at USD 6.79 billion in FY24, while it imported USD 1.4 billion from the US at 15 per cent import duty. India's largest export items to the US are engine components, powertrains and transmissions.

(This story has not been edited by THE WEEK and is auto-generated from PTI)