On Monday, U.S. President Donald Trump indicated that he may introduce exemptions on existing auto-related import tariffs. While speaking at the White House, he mentioned he is considering adjustments to the 25 percent tariffs currently levied on vehicles and auto components imported from countries such as Mexico, Canada, and others. These tariffs, which significantly increase car prices, may be eased temporarily.
The President is reportedly considering temporarily halting the previously implemented auto tariffs, in a move aimed at giving car manufacturers more time to restructure and localize their supply chains.
Initially, Trump had announced the 25 percent tariff on March 27, declaring it a permanent measure. A few days later, on April 2, he introduced a broader range of reciprocal tariffs on various trade partners, varying from 10 percent to 50 percent. However, following a significant sell-off in the bond market that drove up interest rates on US debt, the administration issued a 90-day suspension on the tariffs to ease financial pressure.
In response to these developments, shares of companies within the auto components sector saw notable gains. The Nifty Auto Index climbed approximately 3.5 percent, reaching an intraday peak of 21,276.3—up from its previous close of 20,548.65.
Here are a few auto stocks that recorded an upswing following President Trump’s indication of potential tariff relief:
Sona BLW Precision Forgings Limited
With a market cap of Rs. 28,474.7 crores, the shares of one of the world’s leading automotive technology companies moved up by nearly 8.3 percent to hit an intraday high at Rs. 465.75 on BSE, during Tuesday’s trading session.
Sona BLW Precision Forgings Limited is a global supplier with manufacturing and assembly facilities, R&D centres, and engineering capability centres across India, the USA, Serbia, Mexico, and China.
Bharat Forge Limited
With a market cap of Rs. 50,438.3 crores, the shares of Bharat Forge, which derive nearly 35–40 percent of its sales from the US, moved up by nearly 7 percent to hit an intraday high at Rs. 1,072.3 on BSE, during Tuesday’s trading session.
Bharat Forge Limited is engaged in the business of manufacturing and selling forged and machined components, including aluminium castings for the auto and industrial sector, as well as assembled products for the defence industry.
Samvardhana Motherson International Limited
With a market cap of Rs. 89,006.3 crores, the shares of one of the world’s leading specialised automotive component manufacturing companies for OEMs moved up by nearly 10 percent to hit an intraday high at Rs. 129.9 on BSE, during Tuesday’s trading session.
Samvardhana Motherson International Limited, formerly known as Motherson Sumi Systems Limited, is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers (OEMs).
Tata Motors Limited
With a market cap of Rs. 2.28 lakh crores, the shares of Tata Motors, whose luxury unit Jaguar Land Rover division derives ~30–35 percent of its sales from the US, moved up by nearly 5.5 percent to hit an intraday high at Rs. 628.05 on BSE, during Tuesday’s trading session.
Tata Motors Limited, along with its subsidiaries, is engaged in the design, manufacturing and sales of a wide range of automotive vehicles. The company also manufactures engines for industrial applications, aggregates such as axles and transmissions for commercial vehicles and factory automation equipment, and provides IT services.
Canada Reciprocal Tariffs:
Last week, Canada has since responded with 25 percent reciprocal tariffs of its own, targeting US-made automobiles and parts. The Canadian government stated that these countermeasures would remain in force as long as US tariffs on Canadian vehicles are in place. The situation has led to heightened trade tensions, with consumers in both countries likely to face increased prices as a result.
Written by Shivani Singh
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