Shares of Samvardhana Motherson International Ltd climbed nearly 2.80% on Friday, trading at ₹135.60, after the company addressed investor concerns regarding the recently announced 25% import tariff by the US on certain vehicles and auto components.
The announcement from the company followed a sharp market reaction earlier this week, as several auto and ancillary stocks saw selling pressure in response to the executive orders issued by US President Donald Trump. Samvardhana Motherson, which derives close to 20% of its consolidated revenues from the United States, was among those under scrutiny. The US is the company’s second-largest market after India, followed by Germany, China, and Spain.
In a regulatory filing on March 27, the company clarified that:
“A significant part of the products supplied by the company and/or its subsidiaries to its various customers in the US are either manufactured in the US or are United States-Mexico-Canada Agreement (USMCA) compliant.”
Based on its current understanding, the company believes that the newly proposed tariffs are unlikely to have any material impact on its financials. However, Samvardhana Motherson added a note of caution, stating that any potential impact going forward would depend on the specific inclusions or exclusions of products, components, territories, or tariffs as part of the executive orders, as and when further details are notified or amended.
This clarification brought relief to investors and analysts, boosting the stock during Friday’s session.
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