The possible signing of a US-EU trade agreement is creating a buzz in the auto sector. A reduced vehicle export tariff of 15% could create favourable market dynamics for Indian companies with European linkages or US export exposure. Here are four stocks you should track in this developing scenario.
Tata Motors could benefit significantly if the deal materialises. The company's Jaguar Land Rover (JLR) vehicles are manufactured in Slovakia, which is an EU member. Currently, exports to the US face a 27.5% tariff. A trade deal bringing this down to 15% will likely ease pressure on pricing and expand margins. Notably, 33% of JLR’s sales come from the US market, making this announcement critical for the company’s bottom line.
Samvardhana Motherson International Limited (SAMIL) supplies components to OEMs based in Germany and Mexico that ship finished vehicles to the US. Although the US accounts for only 6% to 7% of SAMIL’s topline, even a marginal shift in trade flows could enhance its revenue from the region due to the improved cost economics post-tariff reduction.
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Sona BLW Precision Forgings has a large exposure to the US auto market, contributing 43% to its overall revenue. Tariff decline could make US imports from Europe more competitive, thereby improving Sona’s order volumes if demand expands with better pricing structures across automotive products.
Bharat Forge exports make up 35% to 40% of its standalone revenue, with the US market being a central contributor. A dip in auto tariffs under the deal could potentially drive growth in new orders as OEMs look to optimise costs while sourcing critical components.
On July 25, 2025, Tata Motors share price opened at ₹701.00 on NSE, above the previous close of ₹700.50. During the day, it surged to ₹702.45 and dipped to ₹695.05. The stock is trading at ₹697.00 as of 9:20 AM. The stock registered a marginal change of -0.50%.
On July 25, 2025, Samvardhana Motherson International share price opened at ₹103.28 on NSE, above the previous close of ₹103.05. During the day, it surged to ₹103.35 and dipped to ₹102.56. The stock is trading at ₹103.06 as of 9:20 AM. The stock registered a marginal change of 0.01%.
On July 25, 2025, Sona BLW Precision Forgings share price opened at ₹489.00 on NSE, below the previous close of ₹490.80. During the day, it surged to ₹489.95 and dipped to ₹487.75. The stock is trading at ₹488.65 as of 9:20 AM. The stock registered a marginal change of -0.44%.
On July 25, 2025, Bharat Forge share price opened at ₹1,214.00 on NSE, below the previous close of ₹1,217.00. During the day, it surged to ₹1,215.40 and dipped to ₹1,210.60. The stock is trading at ₹1,215.20 as of 9:20 AM. The stock registered a marginal change of -0.15%.
The impending US-EU trade agreement, if finalised with the speculated tariff reduction, could shift the global auto trade landscape. Tata Motors, SAMIL, Sona BLW, and Bharat Forge are well-positioned to capitalise on these potential changes given their respective links to the US and EU automotive ecosystems.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Jul 25, 2025, 2:06 PM IST
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