Tata Motors’ PV shares fall more than 4%. What’s causing the sell-off?

Shares of Tata Motors Passenger Vehicle fell as much as 4.5% to the day’s low of Rs 338 on the BSE on Monday after US President Donald Trump threatened to impose new additional tariffs of 10% on several European countries until the US is allowed to buy Greenland. The development is particularly important for Tata Motors given the strong exposure of its British luxury arm, Jaguar Land Rover, to the US market. North America accounted for almost a third of JLR’s sales by 2025, largely driven by the US. According to JLR’s FY 2024 annual report, the US alone contributed approximately 22% of global sales, underscoring its importance to the company’s overall performance.

This development comes at a challenging time for JLR, which is already dealing with the fallout from a recent production shutdown due to a massive cyber attack. The disruption weighed heavily on performance, with the Range Rover maker reporting a sharp 43.3% year-on-year decline in wholesale and retail volumes in the third quarter of FY26.

JLR reported wholesale volumes of 59,200 units in Q3FY26, a steep decline of 43.3% compared to the same period last year. Retail sales for the quarter were 79,600 units, down 25.1% year over year. The company said volumes were negatively affected as production did not return to normal levels until mid-November after the cyber incident.

The automaker noted that both wholesale and retail volumes declined both quarterly and year-over-year due to these operational challenges. The impact was further compounded by the ongoing planned phase-out of older Jaguar models ahead of the launch of the new Jaguar range, which continued to weigh on volumes throughout the quarter in line with expectations.

Additionally, JLR highlighted that increasing US tariffs impacting exports to the US market also contributed to pressure on volumes during the quarter.

Despite the overall volume decline, the company saw an improvement in its product mix. Higher margin models – Range Rover, Range Rover Sport and Defender – accounted for 74.3% of total wholesale volumes in Q3FY26. This compares with 70.3% in the prior year period, although it was lower than the 76.7% contribution in the previous quarter. At around 9.45 am, the company’s shares were trading at Rs 343, down 3% from the BSE’s last close.

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