U.S. tariffs to hit JLR, Sona Comstar the most, dent auto parts makers’ margin by 150 bps

U.S. President Donald Trump’s announcement to impose a steep 25% tariff on imported cars and auto parts will hit Tata Motors’ luxury car subsidiary Jaguar Land Rover the most and several auto component manufacturers, analysts said. However, Tata Motors could face an impact due to JLR, which derives over 30% of its sales volume from the U.S. market in 9MFY25,” said Mrunmayee Jogalekar, auto analyst, Asit C Mehta Investment Interrmediates Ltd. “With no manufacturing facility in the U.S., all JLR vehicles will be subject to tariffs, which could impact pricing and profitability,” she said. “For the Indian auto components industry, the U.S. remains a key export market, contributing 27% to total exports in FY24. According to Anuj Sethi, senior director, Crisil Ratings, the U.S. tariff would dent operating margins of major auto parts makers by 125-150 bps May 2025 onwards from the 12-12.5% range currently.