Tata Motors shares drop 5.5% after JLR suspends shipments from UK plants to US over tariff changes

New Delhi:  Shares of Tata Motors ended nearly 6 per cent lower on Monday after the company-owned Jaguar Land Rover paused vehicle shipments from its facilities in the UK to the US to work out new trading terms in the wake of changes in the tariff structure.

The stock slumped 11.61 per cent to Rs 542.55 -- its 52-week low -- in intraday trade on the BSE. Shares of the firm finally ended at Rs 579.85, down 5.54 per cent.

At the NSE, the stock declined 5.33 per cent to Rs 581.10. Intraday, it tanked 12.72 per cent to hit the 52-week low of Rs 535.75.

The company's market valuation eroded by Rs 12,502.84 crore to Rs 2,13,463.01 crore.

Stock market benchmark indices went into a tailspin on Monday, mirroring a sharp fall in global equities, after US President Donald Trump's tariff hikes and retaliation from China fanned fears that a full-blown trade war would impact economic growth across the globe.

The 30-share BSE Sensex crashed 2,226.79 points or 2.95 per cent to settle at 73,137.90, recording its third day of decline. During the day, the index slumped 3,939.68 points or 5.22 per cent to 71,425.01.

The NSE Nifty tumbled 742.85 points or 3.24 per cent to settle at 22,161.60. Intraday, the benchmark dropped 1,160.8 points or 5.06 per cent to 21,743.65.

"The USA is an important market for JLR's luxury brands. As we work to address the new trading terms with our business partners, we are enacting our short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans," a JLR spokesperson said in a statement last week.

Earlier, on April 2, the company had stated that its luxury brands have global appeal and its business is resilient, accustomed to changing market conditions.

"Our priorities now are delivering for our clients around the world and addressing these new US trading terms," it noted.

Jaguar Land Rover (JLR) is deeply entrenched in the American market.

About 23 per cent of JLR's over 4 lakh units sold in FY24 were in the US. These were all exported from its UK plants.

Trump administration's 25 per cent tariff on imported cars came into effect on April 3.