Tata Motors stock rises as Trump delays 50% EU import tariff; JLR resumes US shipments

Tata Motors shares surged in early trade on May 26 as the stock ticked up more than 1 per cent to Rs 727 after US President Donald Trump temporarily postponed plans to place a steep 50 per cent auto tariff on imports from the European Union. The suspension, now shifted to July 9, broadly reduces investor worries for Jaguar Land Rover (JLR), Tata Motors, and Associates’ fully owned subsidiary.

After Trump’s announcement of a 25 per cent tariff on automobile imports, JLR suspended vehicle exports to the U.S. for about a month in April. The brief suspension was intended to sidestep significant import costs. Nevertheless, the most recent amendment by the US government delaying the 50 per cent levy means JLR can now resume vehicle export operations to the U.S., one of the corporation’s main markets.

The US region stands as JLR’s second largest market after EU exports, accounting for about 20 per cent of the company’s total shipments. Market analysts expect the pullback on tariffs will raise sentiment in the weeks leading up to JLR’s important investor update on June 16.

Strong Q4 numbers

Jaguar Land Rover recently achieved Rs 7.7 billion in Q4 revenue, representing an EBITDA margin of 15.3 per cent, confirming its 10th consecutive profitable quarter. The company also delivered its FY25 target of positive free cash flow, which suggests both improved organizational efficiency and control of costs. 

Going forward, JLR will invest Rs 18 billion over the next five years totally funded through internal accruals, which will be sustainable to fund product development and electrification experience.

Parent company Tata Motors achieved its highest ever consolidated revenue and profit before tax on the back of strong growth in both domestic and international markets. More importantly, the company was able to achieve net debt-free status for its automotive business which is catalytic for investor sentiment. The reduction in debt has led to lower interest expense and it seems the overall financial falling nicely into place.

Although Tata Motors is down 4 per cent in 2025 YTD, it has recovered 21 per cent from its low in April representing solid buying interest at that level.

Market View

Analysts who track the stock say the Trump tariff delay will only help short term; if the global situation returns to a more normal state post-July 9, the volatility may be back. The JLR investor day will also be consulted for more strategic guidance.