Tata Motors shares went up by 3% on May 8 after a report by the New York Times suggested that US President Donald Trump is likely to announce a trade deal with the UK. According to the report, Trump plans to hold a news conference at 10 a.m. EDT (1400 GMT) on Thursday to discuss the deal, calling it a “major trade deal with a big, highly respected country.”
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Trump did not give many details but mentioned that this would be the first of several deals. A UK official confirmed that the two countries had made good progress on the trade deal, which could include lower tariffs on steel and cars.
The UK was not affected by additional tariffs because it imports more from the US than it exports. Tata Motors, the parent company of Jaguar Land Rover (JLR), saw its shares rise by 2.4% at 9:37 am on May 8, reaching a high of Rs 704.5 during the day.
If the trade deal with the UK is announced, it would be very positive for Jaguar Land Rover, as about 20% of its revenue comes from the US. In April, the company stopped sending cars to the US due to a 25% tariff on imported cars. However, recent reports say that shipments have started again, though this hasn’t been officially confirmed.
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Tata Motors’ stock also rose on May 7 after the India-UK Free Trade Agreement (FTA) was signed. The agreement will reduce import tariffs on premium cars coming to India, dropping from over 100% to 10% under a quota system.
Additionally, Tata Motors announced that its shareholders have approved a plan to split the company into two separate listed businesses—one for passenger vehicles and one for commercial vehicles. This split is expected to help the company grow better, especially for Jaguar Land Rover, which is a major part of its passenger vehicle division.
