Tata Motors stock records a 10% decline as its worst daily performance since March 2016. After President Donald Trump introduced his 25% tariff on imports Tata Motors failed to export British-made vehicles from Jaguar Land Rover (JLR) causing its stock prices to tumble by 10% in a single day.

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Since Trump introduced the import duty on March 26th the stock has dropped 22% while today's aggressive market fall added another 10%. In the same time frame the benchmark Nifty 50 index decreased by 6.3% while recording a 4% decline on Monday.

British car manufacturers rely heavily on the United States market for exports where the Society of Motor Manufacturers and Traders reveal British vehicles make up approximately 20% of all exported vehicles. This number stands behind only the European Union. JLR earns almost 25% of its worldwide sales through models like Range Rover Sport and Defender due to U.S. market growth which remains a primary overseas market.

Also Read | Jaguar Land Rover launches the new Defender OCTA at INR 2.95 cr

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Two-thirds of Tata Motors revenue while the majority of profit and cash flow stems from JLR operations. Since the tariff announcement Tata Motors stands as one of the most heavily impacted automobile stock companies experiencing a 22% market slide which surpasses the approximately 10% overall decline in the Nifty Auto index.

Auto companies included in the 15-member index export vehicles to the U.S. but component manufacturers cannot make direct exports to this market because they exist in the index. The stock price of Bharat Forge declined by about 10% as the company works with Tesla.

Brokerage firm CLSA had previously indicated its expectation of a 14% overall volume drop for JLR in the fiscal year ending March 2026, primarily driven by a projected 26% decline in U.S. sales due to the tariffs. Despite these challenges, analysts, on average, maintain a "buy" rating for Tata's stock, aligning with the sentiment for its Indian peers.