Mumbai, March 27 (IANS). The stock of Jaguar Land Rover (JLR), one of the world’s legendary luxury car brands, saw a decline of more than 5 percent on Thursday. The reason for this is the tariff of 25 percent on the cars imported in the US by US President Donald Trump.
In the trading session, Tata Motors shares closed at 669.5 on the National Stock Exchange (NSE) at 669.5, or Rs 38.75.
Trump’s announcement is part of his plan to implement mutual tariffs on various countries. The new car tariffs are going to be implemented from April 2, causing concerns for American car companies.
The US is a major market for JLR and a one-third of the total sales of the company in 2024 was with the US.
According to the company’s annual report, 22 percent of the total sales of JLR come from the US, making it a major income source for the brand.
Most of the JLR vehicles sold in the US are made in the UK and other international plants and now all will be tariffs of 25 percent.
There is no clarity about the impact of these new tariffs on the company’s financial condition and this can lead to fluctuations in Tata Motors’ stock.
Despite the recent decline, the company’s management remains optimistic. Tata Motors recently reiterated that JLR is on the way to meet the target of 10 percent of its fourth quarter and will meet the target of getting the net date free by the end of the financial year.
These comments had earlier helped over the stock to overcome the lower level of its 52-week of Rs 606. Even after its recent recovery, the stock remains 40 percent below its all -time high level.
Anuj Sethi, senior director of Crisil Ratings, said, “About fifth of India’s auto component sector comes from exports. 27 percent of it comes from the US market alone.”
-IANS
ABS/
