4 Auto Stocks Jump After US-EU Trade Deal Cuts Car Import Tariffs to 15%
Synopsis:
Tata Motors, Samvardhana Motherson, Sona BLW, and Bharat Forge are in focus as a new US-EU trade deal lowering car import tariffs could boost exports and benefit these Indian companies with strong global links.
Four auto sector stocks are in the spotlight today after the United States and European Union announced a new trade agreement aimed at reducing import duties on automobiles. Will this be beneficial for Indian companies, check the article below for more details.
What’s the news?
A new trade agreement between the US and the EU that is expected to lower tariff barriers and boost automotive exports caused investors to react favorably, causing shares of Tata Motors, Samvardhana Motherson, Sona BLW, and Bharat Forge to rise as much as 2% on July 28.
The gains followed the US’s historic trade deal with the EU, which lowered car import duties from 27.5% to 15%. This move, which is made in advance of President Donald Trump’s tariff deadline of August 1, aims to standardize duties across the majority of product categories. Following a similar agreement with Japan, the deal is anticipated to reduce trade tensions and give Indian businesses with global supply chains a competitive advantage in the US and EU markets.
Stocks in Focus
Tata Motors
As a division of the Tata conglomerate, the Tata Motors Group is a multinational automaker that produces a variety of automobiles, including cars, SUVs, trucks, buses, and military vehicles. Through joint ventures and subsidiaries like Jaguar Land Rover and Tata Daewoo, it operates in a number of nations, including China, South Korea, the UK, and India.
With a market capitalization of Rs. 2,51,753.90 crore, shares of Tata Motors hit an intraday high of 1.90%, reaching Rs. 700.50 compared to the previous close of Rs. 687.40 per share.
As analysts pointed out potential gains for Jaguar Land Rover, which exports many of its cars to the US from Slovakia, the lower tariff is anticipated to lower costs and increase profits, especially since the US accounts for nearly one-third of JLR’s sales.
Samvardhana Motherson International Limited
The company is one of the biggest suppliers to automakers worldwide and to non-automotive industries like IT, aerospace, logistics, and healthcare. It is also a diversified global manufacturing leader. With more than 400 facilities spread across 44 nations, it operates on five continents and uses a mix of strategic alliances, mergers, and acquisitions to meet changing customer needs.
With a market capitalization of Rs. 1,07,359.79 crore, Samvardhana Motherson International Ltd’s shares rose by 1.97% intraday, touching Rs. 102.32, up from the previous day’s closing price of Rs. 100.34 per share.
Samvardhana Motherson, which supplies to OEMs in Germany and Mexico for the US market, stands to benefit from smoother trade flows and potentially higher volumes as a result of the easing of tariffs.
Sona BLW Precision Forgings Limited
An Indian automotive technology company called Sona BLW Precision Forgings designs, produces, and distributes parts such as gears, hybrid motors, BSG systems, EV traction motors, and differential assemblies. For every kind of vehicle, it also creates base and application software solutions in addition to mechanical and electrical systems.
With a market capitalization of Rs. 29,059.24 crore, shares of Sona BLW Precision Forgings Limited hit an intraday high of 2.18%, reaching Rs. 479.7 compared to the previous close of Rs. 469.45 per share.
Sona BLW, with 43% of its revenue coming from the US, is well-positioned to benefit from a more stable and advantageous tariff regime due to its strong exposure to the American market.
Bharat Forge Limited
Bharat Forge Limited, headquartered in Pune, is a global leader in high-performance, safety-critical components and solutions for industries like automotive, aerospace, defence, railways, marine, and more. It operates in five countries and provides end-to-end services from design to validation. It has developed into a multi-product, diversified company supported by sophisticated manufacturing capabilities and strong engineering expertise.
With a market capitalization of Rs. 56,849.52 crore, Bharat Forge Ltd’s shares rose by 1.97% intraday, touching Rs. 1227.70, up from the previous day’s closing price of Rs. 1204 per share.
Bharat Forge, which sends 35–40% of its standalone exports to the US, is expected to benefit from improved export prospects under a more supportive trade regime, potentially leading to higher demand from the American market.
WRITTEN BY: AKSHAY SANGHAVI
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