Tata Motors, Tata Tech shares rise on hopes of US-UK trade deal; here's why

Shares of Tata Motors Ltd and Tata Technologies Ltd climbed up to 3 per cent each in Thursday's trade amid hopes the US and the UK would sign a trade deal soon. Tata Motors' British arm Jaguar Land Rover has US as one of the key markets. On the other hand, Tata Technologies is promoted by Tata Motors and has JLR as anchor client. Along with Tata Motors Finance, promoters owned 55.22 per cent stake in Tata Technologies. 

On Thursday, Tata Motors climbed 3.45 per cent to hit a high of Rs 704 on BSE. Tata Technologies gained 2.28 per cent to Rs 672.85 apiece.   

A NYT report earlier suggested that the US President Donald Trump was looking to announce a trade deal between the United States and Britain on Thursday. Trump himself on Truth Social posted that he would hold an Oval Office news conference at 10 a.m. EDT on Thursday. This, he said, was about a 'major' trade deal with representatives of "a big, and highly respected, country." 
     
In FY24, JLR derived for 23 per cent revenue and 26 per cent of the total wholesale volume from the US. JLR’s volume exposure to the US had in fact increased to 33 per cent in the first 9MFY25. JLR’s cars are manufactured in the UK, except for the Defender, which is manufactured in the EU. 

A US-UK deal would thus is seen positive for Tata Motors. In the case of Tata Technologies, it generates about 78 per cent revenue from Technology Solutions Segment and the rest from Services Segment. JLR is among its key client. 

In its earnings call, the Tata Technologies' management aid Tata Motors continued to invest and accelerated its commitment to expanding product portfolio, which is providing tailwinds. 

"JLR sits outside of India and is exposed like everybody else to the uncertainties in Europe and the United States, which is their largest market. So, they are impacted in the same way that everybody else is, but Tata Motors has demonstrated resilience through the uncertainties that we have been grappling with over the last six to nine months," CEO & MD Warren Harris said on April 25.