US auto tariffs to add to India's Tata Motors' woes, says Investec

Samvardhana Motherson International

01/04/2025 04:14

** Tata Motors TAMO.NS will be disproportionately affected by 25% U.S. tariff on auto and auto parts imports, according to Investec

** Says North America (NA), accounting for 33% of TAMO's volumes, was the only growth market for Jaguar Land Rover in FY25

** Adds "hefty" 25% tariff substantial enough to dent JLR demand; operating profit likely to fall 2% CAGR over FY25-27

** Says auto components maker Sona BLW SONB.NS, earning 43% rev from NA, to be impacted even as its "limited local supply chain exposure" makes it less vulnerable

** Expects Samvardhana Motherson SAMD.NS to be least impacted

** Lowers earnings estimates for TAMO and SONB

** YTD, TAMO down 9%, SONB drops 22.5% and SAMD sheds 16%

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))