Shares of Tata Motors crashed nearly 13 per cent on Monday after its subsidiary Jaguar Land Rover paused shipments to the US in April as President Donald Trump’s 25 per cent tariff came into effect.

The company said in its statement that the US market is important for JLR’s luxury brands. “As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid-to-longer term plans,” it added.

Last week, CLSA downgraded Tata Motors estimating its EBIDTA margins could fall to 7 per cent in FY26-27.

In addition, Nuvama Institutional Equities believes that the consolidated revenue is likely to be flat y-o-y due to subdued volume performance across JLR and India CV divisions.

The brokerage added that the EBITDA margin shall contract 90bp y-o-y despite an improvement in India CV/PV margin, owing to lower JLR margin. 

The stock traded 8.25 per cent lower on the NSE at ₹563.20 as at 10.38 am, hitting a low of ₹535.75.

In addition to Tata Motors, shares of Trent, Tata Steel, Titan Company and Tata Consumer Products forming part of Nifty 50 index also plunged.

Trent shares witnessed sharp sell-off falling 19.3 per cent to hit a low of ₹4,488. As at 10.46 am, the stock traded at ₹4,640.

Tata Steel stock slumped 11 per cent to a low of ₹125.33. Currently traded 9.57 per cent lower at ₹126.96.

Titan Company shares were down 2.68 per cent to ₹2,993.65 and Tata Consumer Products fell 3.50 per cent to ₹1,049.75 at the time of writing.

Trump’s tariff and recession fears have triggered a sharp sell-off in the market as the Indian equity benchmarks depreciated over 3 per cent. Other Tata Group stocks such as The Indian hotels, Tata Communications, Voltas and Tata Elxsi also traded in red.

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Published on April 7, 2025