Tariff fog dims Tata Motors visibility

Weak pricing

- Manish Joshi

Tata Motors Ltd's stock has largely become a derivative of Jaguar Land Rover (JLR), its luxury car unit that contributed nearly 70% to consolidated revenue and 80% to Ebitda in FY25.

Tata Motors' Q4FY25 results have not triggered a big reaction from the Street as the focus of analysts/investors has clearly shifted to the trade deals featuring UK-India, UK-US and EU-US, and the resultant impact on JLR.

The UK-India deal has limited impact for now on JLR sales in India as most of the vehicles sold in the country are anyway assembled here and the drop in import duty is only applicable to completely built imported vehicles.

It will be beneficial when JLR exports cars from the UK to India as they will be imported at 10% duty.

The UK-US trade deal will mean 10% import duties on all UK-made cars sold in the US up to 100,000 units per year, versus the 2.5% import duty earlier.

JLR sold 129,000 vehicles in North America in FY25, which is 32% of its total sales.