Tata Motors Share Falls 5% as Jaguar Land Rover Cuts Profit Margin

TATA Motors News: Tata Motors share Fall on Monday, 16 June, share drop over 5% in the morning session. This decline comes after the company revealed a lower profit margin from its UK-based luxury car subsidiary, Jaguar Land Rover (JLR) for the financial year FY26.

Today stock touched a day’s low of ₹672.55 on the NSE, down nearly 5%, At 12:00 PM, Now Tata Motors trading at ₹682.80, still down 4.10% from the previous day close.

Tata Motors Share Falls

The main reason behind the stock drop is directly connected to revised earnings guidance from Jaguar Land Rover. The company now expects EBIT margins to fall in the 5% to 7% range for FY26, which is much lower than its earlier target of 10%.

This complete fall is due to new US tariffs, which are hurting the global auto industry. The US has imposed a total 25% duty on imported foreign made cars, including JLR. In response, JLR even paused shipments to the United States.

US is one of its key markets to grow rapidly, but now the US tariffs against the global auto industry impact include Tata Motors. The US is the world’s second-largest car market, so it’s most important for all auto companies.

Also Read: Tata Motors Share Price Target 2025-2050

Jaguar Land Rover Role in Tata Motors

JLR is not just another subsidiary, it’s the backbone of Tata Motors global business because of In FY25, only JLR contributed about 71% of Tata Motors total revenue with delivered 80% of the company’s total profitability so this is the main reason Tata Motors Share Fall.

Also JLR reported strong free cash flow of £1.5 billion, but now in FY26, it expects this figure to fall to near zero.

US Tariffs is around 25% on all foreign-made vehicles sold in the world’s second-largest car market.

Also Read: Top 10 Large Cap Stocks with Highest Upside Potential

Tata Motors Share Price Performance

See the chart below showing how Tata Motors share has performed recently –

Now Trading below 700 mark, this is most important resistance level stock already face rejections from this resistance level two times.

Tata Motors declines 44.50% from its 52 Week High of 1179.05 and now trading at 682.80

Also Read: Top 7 Tata Group Upcoming IPOs in 2025

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