The US government has announced tariff duty of 25% on all imported cars and key auto components from April 2 and collections starting from April 3. CLSA lists out Tata Motors, Bharat Forge, Sona BLW and Samvardhana Motherson as key stocks to watch on the back of exports linked to the US, either made in India or elsewhere.
According to CLSA, “the price increase in the US market could lead to some softening of demand for cars as higher duty on imported components would result in cost escalation for made-in-US cars or direct increase in the price of imported vehicles.”
US tariff impact: 4 stocks to watch out for
That said the international brokerage, CLSA house listed out the key stocks that may see the impact and the amount of revenue they derive from the US market.
Tata Motors: The Tata Motors share price has plunged over 5% intra-day today. The stock is down 11% so far in 2025 and over 1 year, it has declined 32%. According to CLSA’s calculations, “close to 31% of JLR’s retail sales come from the US and models are made in the UK, thus would be exposed to the higher duty, though the US in the past has been a relatively lower-margin market for JLR.” In a note on Match 12, CLSA has put a “High Conviction Outperform” on Tata Motors.
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Bharat Forge: Bharat Forge is another key auto stock under pressure. It is 2% intra-day and so far in 2025, the share price has corrected 11%. Over the last 1 year, the stock has given 4% return to investors. It derives “38% of its revenue, with products being made largely in India and not in the US,” as per the CLSA report.
Sona BLW: This auto component stock is also under pressure and hit a 52-week low. It is down 6.5% intra-day today and over last 3 months, the share price has declined 21% in 2025 so far. The 1-year returns are negative, the stock is down 32%. CLSA analysis lists out that the company “derives 43% of its revenue from the US.”
Samvardhana Motherson: It is down 3% intra-day and declined 16% in 2025 so far.
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