Explained: Why Tata Motors, Samvardhana Motherson and other auto stocks are rising
Tata Motors, Samvardhana Motherson International, Sona BLW and several other auto stocks climbed in early trade on Tuesday, after reports suggested that US President Donald Trump is moving to soften the blow of recently announced automotive tariffs.By 9:50 am, Tata Motors shares were up 1.2% at Rs 676.45, while Samvardhana Motherson gained 1.4% to Rs 136.85 on the Bombay Stock Exchange. Although some of the early gains were trimmed by profit booking, the auto sector stood out in an otherwise cautious market. Sona BLW shares were trading 3.2% higher at Rs 478.10. The fresh optimism came after White House officials said the administration was working on measures to ease tariffs on certain foreign parts used in vehicles manufactured domestically. Trump, who had earlier proposed a steep 25% tariff on imported auto parts effective May 3, now appears to be pulling back slightly, especially to protect US carmakers and their suppliers.Trump is scheduled to visit Michigan, the heart of America's auto industry, where major players like Ford, GM and Stellantis operate alongside hundreds of smaller suppliers. Industry groups had mounted intense lobbying efforts last week, warning the administration that blanket tariffs would choke supply chains, drive up car prices for consumers, hurt dealership sales, and trigger bankruptcies across the supplier network.In a letter to top US officials, a coalition representing automakers like General Motors, Toyota, Volkswagen and Hyundai argued that many suppliers are already under financial strain. 'It only takes the failure of one supplier to shut down an entire production line," they cautioned, painting a grim picture of cascading disruption across the industry.While full details of the tariff adjustments are still awaited, the market is already factoring in the possibility of a softer stance, especially for key component suppliers. That sentiment helped lift auto-related stocks today, even as broader market sentiment stayed tentative.Investors will be watching closely for official announcements later today — and for any broader signals on how the evolving US-China trade tensions could reshape the global auto supply chain in the months ahead.Must Watch
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