Tata Motors Shares Falls 3% from days High as Brokerage Firm UBS has reiterated its Sell rating on Tata Motors, setting a target price of Rs 760, citing fresh headwinds from U.S. trade policy and signs of broader industry weakness.
No Relief from Trump Tariff Concession
While the market briefly cheered news of auto tariff concessions by the Trump administration, UBS clarified that these only apply to imported auto parts used in U.S.-made vehicles — not to fully imported cars. This means that Jaguar Land Rover (JLR), which imports its vehicles to the U.S., receives no benefit from the new policy. Hopes of easing cost pressure on JLR have therefore been dashed.
Peer Weakness Signals Sector-Wide Pressure
Further adding to the concern, Porsche has downgraded its earnings guidance, highlighting ongoing pressure across the luxury auto segment. UBS notes that JLR remains particularly vulnerable compared to its German peers, given its limited scale, lower pricing power, and ongoing transition challenges in EV and hybrid offerings.
Stock Rally Ignores the Fundamentals
Despite these negatives, Tata Motors stock has rallied in recent weeks — a move that UBS views as disconnected from the worsening global and segment-specific outlook. Rising input costs, stagnant volume growth in key markets, and lack of tariff concessions all combine to undermine the current optimism.
As of 29th April Share OF Tata Motors Trading 1% lower at ₹662 and in last 6 Months Tata motors Shares Underperformed to markets, It Down 21% Amid Donald Trump's Auto Tariffs and Weakness in Local markets
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