Samvardhana Motherson shares fell by 6% following the US government’s decision to impose 25% tariffs on auto imports. The move, set to take effect on April 2, is expected to impact Indian auto component manufacturers, particularly those with significant US exposure.
According to a report by Moody’s, the planned tariffs will pose risks to companies in the auto, steel, and chemicals sectors across South and Southeast Asia. Among Indian firms, Samvardhana Motherson Ltd. is particularly vulnerable due to its heavy reliance on US exports.
The company derives approximately 20% of its total revenue from the US, including revenue from operations in Mexico. With the US being a key market, the increased tariffs could potentially affect profit margins and overall business performance.
India’s vehicle exports to the US constitute only 3% of the country’s total exports. However, auto-part suppliers and luxury carmakers selling directly or through their North American operations will face tariff challenges.
Samvardhana Motherson shares opened at ₹130.50 on Thursday, reaching the same high before dipping to a low of ₹124.73. The stock remains volatile, with its 52-week high at ₹216.99 and a low of ₹115.83.
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