Latest News

JLR's parent company Tata Motors and Tesla's Indian suppliers scuffle over US auto tariffs

JLR's parent company Tata Motors and Tesla's Indian suppliers scuffle over US auto tariffs

India's Tata motors and its auto parts manufacturers, which include Tesla and others, fell on Thursday, after U.S. president Donald Trump announced plans to impose 25% tariffs on imported auto parts and cars.

Tata Motors fell 5% while Sona Comstar - Tesla's largest Indian supplier - dropped over 4%. This led to a drop of 1.2% in the automotive sector in the third biggest auto market in the world.

Tariffs on auto parts and cars imported to the U.S. begin on May 3, while 25% tariffs will be applied on imports of light trucks and cars. Elon Musk, Tesla's CEO, said that the news had a "significant" impact on Tesla.

Tata Motors' Jaguar Land Rover (JLR) luxury vehicles, imported from UK and Slovakia plants, are a popular choice for Americans.

Samvardhana, India's largest auto parts supplier, dropped over 2%. Bharat Forge, which also supplies Tesla was down by 0.4%.

Samvardhana, along with India, has a top-ranking market in the U.S. This accounts for 20 percent of their total revenue. North America, led primarily by the U.S. market, accounts for 40% of Sona Comstar’s revenue.

This decline is also reflected in the share movements of global automakers such as Toyota, Hyundai, Stellantis, and Ford. All of these companies fell following Trump's announcement. (Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D'Souza)

(source: Reuters)