Tata Motors, Maruti, Mahindra: Impact of Trump Tariffs | CA Rachana Ranade
Published: 2025-03-27
Status:
Available
|
Analyzed
Published: 2025-03-27
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 1
Prediction
Topic
Status
US President Donald Trump announced a 95% tariff on imported autos.
"US President Donald Trump announced 95% tariffs on import of autos."
Pending
Pure play Tata Motors has minimal direct exposure to US auto tariffs, but JLR, owned by Tata Motors, has significant exposure to US markets.
"For Tata Motors only if I am talking about pure play Tata Motors then again it is as good as zero but weight Tata Motors owns JLR and JLR has a significant exposure to the US markets."
Pending
JLR generated approximately 24% of its revenue from North America in FY22 (assuming 232 is a typo for 22).
"For JLR around 24% of the revenue is generated from North America alone. This is the figure for financial year 232."
Correct
JLR contributes roughly 71% of Tata Motors' total revenue.
"JLR accounts for roughly 71% of the revenue of Tata Motors."
Correct
Approximately 17% of Tata Motors' total revenue is derived from the USA.
"So in totality for Tata Motors if we do a normal math that comes to roughly 17% of the total revenue from USA."
Pending
Tariff differences could lead to additional charges, potentially impacting JLR's sales in the USA.
"So, what happens is that if there is again a tariff difference, he will charge additional tariff, and that could impact JLR sales in the USA."
Correct
JLR vehicles are typically manufactured in the European Union and the UK.
"Typically JLR cars are manufactured in the European Union and the UK."
Correct
Mahindra and Mahindra has one manufacturing facility located in the USA.
"Mahindra and Mahindra yes they have one manufacturing facility in USA"
Correct
Tata Motors has three potential options to address the impact of tariffs: passing the cost to customers, reducing internal costs while keeping prices constant, or absorbing the tariff burden themselves.
"Option number one is to pass on the cost to the customer. ... Possibility number two, they decide hey, let's not pass on the cost to the customers. We will keep the selling price constant, but we will cut down on the cost. And option number three is absorbing the hit, absorbing the tariffs by themselves"
Pending
Morgan Stanley reports that absorbing tariffs could reduce Tata Motors' operating margins by 200 basis points (2%).
"According to a report by Morgan Stanley, they are mentioning that this could hit their operating margins by 200 basis points. So basically their operating margins could go down by 2%."
Pending
Tata Motors management has consistently projected an EBIT of 8.3% for FY26.
"management is saying that we are estimating EBIT at 8.3% for FY26 and they have maintained this for quite a long time."
Pending
The speaker will discuss their target for Nifty in the year 2027.
"And very important, we are going to discuss about my target of Nifty in 2027."
Pending
The US is imposing a 95% tariff on imported autos, effective April 2, 2025.
"US President Donald Trump announced 95% tariffs on import of autos."
Incorrect
Approximately 17% of Tata Motors' total revenue is derived from the US market, primarily through JLR's sales in North America.
"For JLR around 24% of the revenue is generated from North America alone. ... So in totality for Tata Motors if we do a normal math that comes to roughly 17% of the total revenue from USA."
Pending
Morgan Stanley predicts that the new tariffs could reduce Tata Motors' operating margins by 200 basis points (2%).
"According to a report by Morgan Stanley, they are mentioning that this could hit their operating margins by 200 basis points."
Pending
Tata Motors management has projected an EBIT of 8.3% for FY26 and has consistently maintained this forecast.
"management is saying that we are estimating EBIT at 8.3% for FY26 and they have maintained this for quite a long time."
Pending
If Tata Motors absorbs the tariff costs internally, there is a low probability they will achieve their projected 8.3% EBIT margin for FY26.
"Now if they are they take this decision of absorbing the cost by themselves there is very less chance that they will be able to keep up to this 8.3% EBIT margin"
Pending
The speaker will discuss their target for Nifty in the year 2027.
"we are going to discuss about my target of Nifty in 2027."
Pending