Tata Motors shares are the top gainers on the Nifty 50 index with gains of over 4%, while those of Samvardhana Motherson and Sona BLW are up over 7% each in early trade.
US President Donald Trump announced on Monday that he is looking to “help some of the car companies,” as these companies need a “little bit more time” to move their production to the US.
“I’m looking for something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time because they’re going to make them here,” Trump said without elaborating on the potential plans.
The news had sent shares of US car companies like General Motors, Ford and Chrysler-parent Stellantis higher by up to 6%. Shares of Asian automakers like Toyota, Kia and Honda have also surged this morning.
Mexico and Canada currently contribute to 30% to 60% of the vehicles sold in the US. 30% to 40% of vehicles sold by General Motors and Toyota in the US, are produced in Mexico and Canada, while 60% of Volkswagen vehicles, sold in the US, are produced in those countries.
Mexico contributes around 4% of Samvardhana Motherson’s revenue, while for Sona BLW, that figure is around 2%.
The 25% auto import tariffs announced by the Trump administration are still in place. In response to this, Tata Motors’ unit Jaguar Land Rover has stopped shipments to the US for the month of April.
Shares of Tata Motors are trading 4.3% higher at ₹620.4. The stock is now up nearly by ₹100 from its recent 52-week low of ₹535.
Shares of Samvardhana Motherson are up 7.2% at ₹126.73 in early trading but remains well below its 52-week high of ₹217.
Sona BLW shares are also up 7.1% at ₹457.5. The stock has also corrected significantly from its 52-week high.
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