By 5paisa 04 Mar 2025
Shares of Samvardhana Motherson & Sona BLW slipped over 2% on March 4 after Trump's 25% tariffs on Mexico and Canada came into effect, affecting auto component exports.
India's auto component exports to Mexico account for 3% of total exports, around $656 million, with forgings and castings being the main products affected by the tariffs.
Samvardhana Motherson generates 4% of its revenue from Mexico, while Sona BLW earns 2%. The impact will depend on how OEMs adjust production strategies due to rising US vehicle costs.
Sona BLW may benefit if OEMs shift production to the US, allowing direct supply to US-based facilities, despite its Mexico assembly hub.
Both stocks have struggled in the past month, with Sona BLW down 5% and Samvardhana Motherson losing 14% since Trump's tariff announcements.
Investment/Trading in securities market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equities and Derivatives can be substantial.
Disclaimer