Tata Motors Shares Price Rises as US Tariff Delay Boosts Investor Sentiment

Market Performance

On May 26, Tata Motors shares price rose by 1% to ₹727, reacting positively to recent international trade developments.

This uptick follows US President Donald Trump's announcement to postpone the imposition of a 50% tariff on EU automobile imports until July 9, bringing temporary relief to global automakers, including Tata Motors' subsidiary, Jaguar Land Rover (JLR).

Despite a 4% decline in the stock in 2025, Tata Motors shares have shown resilience, climbing 21% from their April lows.

Global Policy Boosts Tata Motors

President Trump proposed a 25% tariff on US-bound auto imports in April, prompting JLR to pause vehicle shipments to the US for a month.

However, the landscape shifted when the White House issued an executive order that provided:

• Tax credits
• Tariff waivers up to 15% for vehicles assembled domestically

As a result, JLR resumed exports to the US earlier this month. The US is a crucial market for JLR, accounting for 20% of UK-made vehicle exports, second only to the European Union.

Company Performance Snapshot

Jaguar Land Rover (JLR)

• Revenue (Q4 FY25): ₹7.7 billion
• EBITDA Margin: 15.3%
• Achieved 10 consecutive profitable quarters
• Successfully met FY25 target of positive free cash flow
• An ₹18 billion investment is planned over the next five years, entirely financed by operating cash flows.

Tata Motors (Parent Company)

• Posted record-high revenue and profit before tax
• Achieved a significant milestone by becoming debt-free on a consolidated basis in its automotive division
• This led to a reduction in interest expenses, improving overall financial efficiency

Summary

The Tata Motors shares price got a fresh boost after the US delayed steep tariffs on EU car imports, indirectly benefiting JLR's transatlantic operations. With resumed exports, solid quarterly performance, and a clean, debt-free slate, Tata Motors appears poised for a firmer financial footing.

As trade winds shift and global markets react, Tata Motors' strategic positioning and operational gains have helped the company navigate uncertainties and fuel investor confidence.