Tata Motors to Samvardhana Motherson: Four Auto stocks to watch after the US-European Union deal

The US on Sunday evening has announced a “mega” trade deal with the European Union at 15% tariffs across most product categories.The deal follows a large deal announced with Japan last week.

A bigger contour of the deal is that the tariffs on cars from the European Union will also be at 15%, in comparison to the 27.5% levy that is currently in place.

This deal comes just days ahead of US President Donald Trump’s August 1 tariff deadline.Automobiles is a big export market for the European Union to the US. The EU-US trade relationship is currently valued at close to $2 trillion, as of 2024.

Here are four stocks you need to watch as the deal has now taken place:

Tata Motors

As per the US-UK agreement, the tariff on automobile exports is already down to 10%, as the UK is not part of the European Union.

However, Slovakia, which is a major plant for the high-end Jaguar Land Rover (JLR), the tariff will now come down to 15%.

33% of JLR’s volumes come from the US markets and a significant amount of that comes from the Slovakia plant.

Samvardhana Motherson

The company supplies to OEM plants to Germany and Mexico that export to the US. The overall exposure of the US market is 6% to 7% of Samvardhana Motherson’s overall topline.

Sona BLW

The US market contributes to 43% the auto component manufacturer’s overall topline.

Bharat Forge

Exports to the US market form 35% to 40% of the company’s standalone export.