Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Motherson Sumi and other shares in automobile sector were among major losers. Tata Motors touched 52-week lows at Rs 555 and the stock is currently looking strongly bearish on technical charts. Tata Steel was also among major losers in early trades. NSE Nifty was trading 3.55 percent lower. If the current market weakness continues, we could see 52-week lows for NSE Nifty and BSE Sensex this week. Tata Motors had recovered from lows recently but the tariff war started by US President Donald Trump has once again triggered selling in the stock.

Tata Motors Drops on Nifty After JLR Suspends U.S. Shipments Amid Tariff Uncertainty

Shares of Tata Motors Ltd. slid sharply in early trading on April 7, emerging as the worst performer on the Nifty 50 index, after its luxury vehicle arm Jaguar Land Rover (JLR) announced a temporary suspension of shipments to the United States. The move comes as the automaker weighs its options in response to newly imposed 25% tariffs on auto imports by the U.S. government.

The UK-headquartered JLR confirmed that it will halt all vehicle exports to the U.S. beginning in April while it reassesses operational strategies to navigate the elevated import duties.

Tariff Shock Prompts Analyst Downgrade

The market reaction intensified after CLSA, a global brokerage firm, downgraded Tata Motors’ stock from “high-conviction outperform” to “outperform” on April 4. Along with the rating cut, the firm slashed its target price to Rs 765 per share, down from an earlier projection of Rs 930.

CLSA’s downgrade reflects mounting concerns about the impact of U.S. trade policy on Tata Motors’ financial trajectory. Analysts believe that the 25% tariff on auto imports could significantly dent demand for JLR vehicles in one of its most critical overseas markets.

JLR’s Heavy Reliance on the U.S. Market a Key Vulnerability

Jaguar Land Rover, which sold over 400,000 units globally in FY24, derives roughly 23% of its volumes from the U.S. This high exposure places the company at considerable risk under the new tariff regime. According to CLSA estimates, JLR’s unit sales could decline by up to 14% year-on-year by FY26 as a direct consequence of the tariff burden.

Tata Motors, which relies heavily on JLR’s international performance, is therefore expected to face earnings headwinds in the coming fiscal years unless alternative export strategies or tariff mitigation plans are implemented.

Profitability Pressures Ahead Despite Resilient Cash Flow

CLSA has also trimmed its FY26 EBITDA estimate for JLR by 15%, signaling a moderation in earnings expectations. The company’s EBIT margin is projected to fall to 7% in FY26 and FY27, down from a stronger 9% margin expected in FY25.

Despite this, Tata Motors is still forecast to generate positive free cash flow, a silver lining that reflects disciplined capital management and cost optimization efforts even amid external shocks.

Investor Outlook Hinges on Trade Resolution

The recent tariff escalation and operational pause in the U.S. cast a shadow over Tata Motors’ near-term growth narrative, particularly at a time when the company has been recovering on the back of improved EV launches and a stronger JLR order book.

Investors are now closely watching how JLR navigates trade talks and whether exemptions or revised sourcing strategies might reduce the financial blow. In the interim, Tata Motors’ stock may remain volatile, particularly given its close correlation with global policy shifts.

As Tata Motors evaluates long-term resilience amid geopolitical uncertainty, its ability to diversify revenue streams, maintain cash generation, and adapt operationally will be pivotal in maintaining investor confidence.

Tata Motors Stock Snapshot and Financial Metrics

Tata Motors' valuation appears compelling, but concerns over cyclical demand, EV adoption pacing, and global macro headwinds are weighing on sentiment.

Daily Candlestick Chart Patterns Signal Exhaustion

Recent candlestick formations suggest a slowing of downward momentum. On daily charts:

A long lower wick indicates buyers are stepping in at lower levels.

However, no strong bullish reversal pattern has yet emerged.

A close above Rs 570 with volume confirmation may indicate the start of a base-building process.

Until that confirmation appears, the short-term trend remains biased toward consolidation or weakness.

Fibonacci Retracement Levels for Tata Motors

Based on a recent swing from Rs 555.55 (low) to Rs 570.30 (high), the key Fibonacci support and resistance levels are:

Support and Resistance Analysis

Tata Motors is presently testing key support near Rs 555. Its next zones to watch are:

Immediate Support: Rs 555.00

Major Resistance: Rs 570.00

Breakout Target: Rs 590.00

Downside Risk Zone: Below Rs 545.00

Investors should wait for a decisive move beyond Rs 570 to validate recovery.