Shares of Tata Motors Ltd surged 3% on 8 May after reports hit the market that US President Donald Trump is expected to announce a trade deal between the United States of America and the United Kingdom. 

US President Donald Trump has announced intentions to host a news conference on Thursday (IST) to announce a ”big trade deal.”

The news conference will begin at 7:30 pm today. Even though he did not clarify which country he was referring to, a story from The New York Times suggests that Trump was referring to the United Kingdom.

India and the United Kingdom (UK) have announced the successful conclusion of the historic Free Trade Agreement (FTA). The deal is anticipated to strengthen strategic and economic connections between the two states.

According to sources, the agreement is intended to benefit Indian automakers with UK operations, such as Tata Motors. The FTA is anticipated to have substantial repercussions for Tata Motors’ British luxury automobile maker, Jaguar Land Rover (JLR). The FTA aims to decrease tariffs on a variety of items, including JLR automobiles, potentially making them more affordable and hence increasing volumes.

Particularly in the luxury market, UK automakers may benefit from a decrease in automobile import tariffs from 100% to 10% (subject to a predetermined number). Some luxury cars will be less expensive with a tariff cut, but Elara Capital analysts predict that costs will still be more than Rs 80–90 lakh.

In the January to March 2025 quarter (Q4FY25), JLR experienced significant sales growth in North America, with wholesale volumes rising by 14.4% compared to the previous year. 

The board of Tata Motors has proposed that the company be divided into two separate listed companies: one for the Commercial Vehicles (CV) business and its related investments, and another for the Passenger Vehicles (PV) business, which includes PV, electric vehicle (EV), JLR, and its related investments. This idea is said to provide stockholders equal ownership in both listed firms.

The proposed demerger will increase the company’s focus and agility, allowing it to concentrate on worldwide prospects in the CV industry. This will also contribute to the significant synergies between PV, EV, and JLR, particularly in the fields of EVs, autonomous vehicles, and vehicle software.

Tata Motors stated in its FY24 annual report that its goal will be to become a world-class organisation operating in the CV industry, providing a greater customer experience, improved growth possibilities for employees, and increased value for shareholders.

At 11:50 am, the shares of Tata Motors were trading 2.44% higher at Rs 696.90 on NSE.

Curious About Tata Motors Ltd? Ask the Analyst.

Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!