Tata Motors Shares Jump 5%: Trump’s Positive Statements On Tariff Lift Auto Stocks; Brokerage Turns Cautious

Tata Motors share price showed a strong start on Tuesday, surging by 5% at the opening bell on the Bombay Stock Exchange (BSE). The rally in Tata Motors shares comes after a recent dip earlier this month, as the stock struggled due to Trump's tariff impact on the auto sector. However, today's improved investor sentiment and positive signals from Trump have pushed Tata Motors shares and other auto sector stocks back into the green.

What Did Donald Trump Say About Car Companies and Tariffs?

In a recent address, U.S. President Donald Trump said he is thinking about ways to help car companies that are currently facing challenges due to high import tariffs.

He explained that many car makers are switching to using auto parts made in places like Canada, Mexico, and other countries, but they need more time to start making those parts in the U.S. again. Trump said, "They need a little bit of time, so I'm talking about things like that," which suggests he's considering some kind of temporary relief or support.

However, he did not say clearly whether he would reduce or remove the 25% import taxes (tariffs) that are already in place on cars and auto parts coming from other countries. These tariffs are especially important for companies that import parts from outside the U.S., even from countries like Mexico and Canada under the USMCA trade deal.

Tata Motors Share Price Movement

On Tuesday, April 15, Tata Motors share price opened at Rs. 614, with a 3% rise from its previous close of Rs. 595.05. The stock surged to an intraday high of Rs. 628.30, registering a 5.16% gain in early trade. This rally comes amid improved sentiment in the auto sector. In the last five trading sessions, Tata Motors stock has gained approximately 10.66%. Despite this recent upward trend, Tata Motors shares are still down by around 16% year-to-date (YTD).

Tata Motors Share Price Target

Deven Choksey Research has maintained an 'Accumulate' rating on Tata Motors stock with a target price of Rs 757, implying a 13.20% upside from the current market price (CMP) of Rs 669.

The firm stated, "Industry growth for Q4 FY25E is expected to remain subdued, with limited retail enthusiasm and a lack of strong seasonality affecting volume momentum." Tata Motors' volumes are projected to decline 7% year-on-year, driven by weaker performance in both commercial vehicles (CV) and passenger vehicles (PV). Further, Tata Motors profit is expected to fall sharply YoY due to a high base effect and absence of one-time tax benefits that had boosted the previous year's earnings.

Kotak Institutional Equities has downgraded Tata Motors shares from 'Add' to 'Reduce', citing potential risks from Donald Trump's tariff proposals. According to Kotak, Jaguar Land Rover (JLR) - which contributes around 28-30% of its sales from the U.S. market - could be significantly impacted. Based on different tariff scenarios, Kotak projects a potential 15-37% downside in earnings for Tata Motors.

Motilal Oswal has maintained a neutral rating on Tata Motors stock with a target price of Rs. 725, suggesting an 8% upside from current levels.
The broking expects Land Rover (LR) volumes to grow by 3% YoY in Q4 Q4FY25. However, it also forecasts a 130 basis point YoY contraction in EBITDA margins due to rising discounts and higher warranty costs.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.