MUMBAI: May 12, 2025: Tata Motors’ stock has recovered from tariff concerns, reaching a high of Rs 719.70 on May 12, 2025, after dropping to an all-time low of Rs 579.75 on April 8, 2025.
Market analysts attribute this positive shift to the US-UK trade agreement, which reduces car tariffs from 25% to 10% for the first 100,000 UK-manufactured vehicles each year.
‘The optimism stemming from the US-UK trade deal, which lowers tariffs, has significantly altered the stock’s trajectory,’ said an analyst who spoke to EV story, adding that the agreement is especially beneficial for Jaguar Land Rover (JLR) because it allows for tariff reductions, enhancing the company’s market position.
Following a halt in US exports due to the previous 25% duty, JLR resumed shipments in May at the new, lower rate.
Currently, North America accounts for 36% of JLR’s sales in Q3 FY25, making this tariff reduction critical to both volume and profit margins.
Furthermore, the India-UK Free Trade Agreement reduced import duties on British vehicles from 100% to 10%, which significantly improved JLR’s pricing strategy in India.
Analysts believe that this competitive pricing could increase JLR’s presence in India’s rapidly growing luxury market, with Tata Motors’ stock recovering more than 16% from its 52-week low due to tariff concerns.
Market experts are optimistic about this trend, with one analyst telling EV Story, “Given the positive implications of both the US-UK and India-UK agreements for long-term export and domestic opportunities, it is advisable to consider accumulating Tata Motors for potential value and growth.”
