Tata Motors Shares Dip for Fourth Straight Day Amid Global Trade Developments
Tata Motors Limited shares extended their losing streak for the fourth consecutive session on Tuesday, June 17, witnessing a fresh decline of 1.5%. The slump came even as the UK and the US signed a trade agreement during the G7 summit held in Canada. This development, however, failed to lift investor sentiment around the stock, which turned out to be the worst performer on the Nifty 50 index for the day.
The decline was largely attributed to the company’s UK-based subsidiary, Jaguar Land Rover (JLR), issuing a weak outlook for the current financial year. According to the terms of the new trade deal, US tariffs on UK auto exports will be reduced from 27.5% to 10% starting later this month. However, this reduction will apply only to an annual quota of 100,000 vehicles. A list of other UK products exempted from the standard 25% US tariff is expected to be released later.
Prior to the imposition of these higher auto tariffs, the standard US import duty on passenger vehicles was just 2.5%. While the new 10% rate is significantly lower than the earlier retaliatory tariffs, it still exceeds the original baseline, suggesting that costs will remain elevated compared to pre-tariff levels.
In 2024, Tata Motors exported approximately 1.02 lakh (102,000) vehicles from the UK to the US.
Brokerage firm CLSA has maintained an “Outperform” rating on Tata Motors with a target price of ₹805, expressing optimism that profitability for JLR will improve by FY2027, driven by better scale and cost-saving initiatives.
Tata Motors Share : On the contrary, Jefferies has assigned an “Underperform” rating to the stock with a reduced price target of ₹600. The firm has cut its FY2026–2028 earnings per share (EPS) estimates by 12%, bringing them down to 19%.
Meanwhile, Morgan Stanley continues to maintain an “Equal-weight” stance on Tata Motors, with a price target of ₹715.
Among the 35 analysts covering Tata Motors, 17 have given it a “Buy” rating, 12 recommend “Hold,” and 6 suggest “Sell.”
As of early trading on Tuesday, Tata Motors shares dropped by 1.3%, trading at ₹677.65. This follows a 4% decline on Monday, making it one of the top laggards on the Nifty index.
Tata Motors Shares Extend Decline Amid Weak JLR Outlook and Global Trade Realignment
Tata Motors Limited shares fell for the fourth consecutive day on Tuesday, June 17, registering a further 1.5% drop in early trade to ₹677.65. The decline continues a downward trend triggered by multiple global and domestic factors, including disappointing guidance from its UK-based subsidiary, Jaguar Land Rover (JLR), and a newly signed trade agreement between the US and the UK that reshapes the export tariff structure for automobiles.
Global Trade Pact Fails to Uplift Market Sentiment
Tata Motors Share: The US and UK recently signed a trade deal during the G7 summit held in Canada, which was expected to ease tensions around transatlantic trade. As per the agreement, US import tariffs on UK-manufactured vehicles will be reduced from 27.5% to 10% for up to 100,000 vehicles annually. While this marks a significant drop from the retaliatory tariffs imposed during past trade conflicts, the new 10% rate still stands well above the original 2.5% duty that existed before trade tensions escalated.
This has created a mixed outlook for UK-based auto exporters such as Jaguar Land Rover. While the tariff reduction provides partial relief, the cap on eligible vehicle exports and the higher-than-standard duty could still pressure profit margins and pricing strategies in key international markets like the US.
Weak JLR Guidance Adds to Investor Concerns
What added fuel to the fire was Jaguar Land Rover’s weak outlook for the current fiscal year. The luxury carmaker cited macroeconomic headwinds, softening demand in major global markets, and ongoing supply chain disruptions as major reasons behind its cautious guidance. Analysts believe that JLR’s exposure to premium markets, especially in Europe and the US, makes it particularly vulnerable to inflationary pressures and geopolitical instability.
For Tata Motors, which heavily depends on JLR for global revenue, any slowdown in its UK operations tends to have a cascading effect on its overall stock performance.
Brokerage Views Reflect Mixed Sentiment
Tata Motors Share: Market analysts remain divided over the stock’s future trajectory:
- CLSA has maintained an Outperform rating with a price target of ₹805. The firm sees long-term improvement in JLR’s profitability starting FY2027, driven by cost-optimization measures and increased production scale.
- Jefferies, on the other hand, downgraded Tata Motors to an Underperform with a reduced price target of ₹600. It also slashed its earnings per share (EPS) projections for FY26–28 by 12%, citing weaker-than-expected JLR volumes and reduced margins.
- Morgan Stanley continues to hold an Equal-weight rating with a target price of ₹715, reflecting a more balanced view on risks and rewards.
Among the 35 analysts covering the stock, 17 recommend a “Buy,” 12 suggest “Hold,” and 6 advise “Sell.” The mixed recommendations reflect uncertainty surrounding JLR’s short-term outlook and how quickly Tata Motors can pivot or mitigate risks.
Performance Snapshot and Market Impact
Tata Motors has been a standout performer over the past year, driven by robust domestic sales of passenger and commercial vehicles, and an ongoing transition toward electric mobility. However, the recent weakness suggests that global developments — particularly those involving its international subsidiaries — still weigh heavily on overall investor confidence.
The company’s shares have now fallen nearly 6% over the last two trading sessions, including a 4% decline on Monday, making it one of the biggest laggards in the Nifty 50 index.
Tata Motors Share Conclusion: What Lies Ahead?
The near-term outlook for Tata Motors hinges on how JLR navigates the evolving tariff landscape and macroeconomic uncertainties. While domestic performance remains solid and EV initiatives are gaining momentum, global challenges — including subdued demand in developed markets and rising input costs — may continue to put pressure on the stock.
Investors and market watchers will be closely monitoring upcoming quarterly results, volume trends, and any further commentary from Tata Motors regarding its international strategy and cost control measures.