Newsletter
Tata Motors stock is down nearly 50% in 2025—erasing over ₹2 lakh crore in market value. And the reason isn’t buried in the footnotes. Jaguar Land Rover, its crown jewel, just ran into a wall. A sudden 25% U.S. tariff on foreign auto imports has forced Tata Motors to pause all JLR exports from the UK—cutting off access to its largest overseas market and shaking investor confidence in the company’s global strategy.
By the numbers
- Market capitalisation: ₹2.33 lakh crore (as of Mar 2025)
- Total revenues (FY24): ₹4.38 lakh crore | Net profit (FY24): ₹31,807 crore
- JLR share in revenue: 70%
- EV sales in FY24: 1.58 lakh units (up 48% YoY)
Unlike rivals, JLR has no manufacturing footprint in the U.S. With tariffs active, it has halted exports from both the UK and EU. What was once a margin risk has now become a top-line hit—one that could show up clearly in Q1 FY26 results.
Until this point, Tata Motors had been on a tear. FY24 was a breakout year: record profits, 48% growth in EV sales (1.58 lakh units), and improved balance sheet metrics. But the JLR overhang changes everything. Margins are set to compress, cash flows may come under pressure, and even the domestic business—especially in passenger vehicles—is seeing signs of cooling demand.
What’s next for Tata Motors?
The company is still doubling down on electric. A new gigafactory is underway in Gujarat. Tata.ev has multiple launches in the pipeline. JLR is sticking to its ‘Reimagine’ EV strategy. But the competitive landscape has changed. Hybrids are gaining favor, especially after policy shifts like Maharashtra’s tax break, which benefits hybrid buyers more than EVs. Commercial vehicle growth is also tapering off.
Risks to track: the risks now stack high. JLR is both the brand’s strength and its soft spot. Without a U.S. manufacturing base, Tata Motors is vulnerable to long-term geopolitical and tariff risks. Any further escalation in the U.S.–China trade war could also ripple across supply chains and demand.
Domestically, EV profitability remains elusive. Costs are sticky. Discounts are rising. And working capital is stretched. Tata’s early lead in EVs is now being challenged by both foreign and local players.
Bottom line: This isn’t just a stock correction—it’s a business model being tested. Tata Motors is fighting on two fronts: trade shocks abroad and rising competition at home. Whether it rebounds—or rethinks its global and domestic strategy—depends entirely on how it navigates the next few quarters.
