Auto ancillary stocks crashes after US President Trump imposes tariffs on Mexico & Canada

On Tuesday, the shares of the auto ancillary company have tumbled after the tariff imposed by US President Donald Trump on Mexico and Canada take effect from today.

Donald Trump imposed a 25% tariff on all imports from Mexico and Canada starting today, following a one-month pause after the initial announcement. While stocks recovered after last month’s tariff imposition, India’s auto component exports to Mexico, accounting for 3% of total exports worth $21.2 billion, amounting to $656 million, may face potential impacts, according to Elara Securities.

Here are the stocks that crashed up to 5% after tariffs imposed by US President Donald Trump on Mexico and Canada:

1. Sona Blw Precision Forgings Ltd

Sona BLW Precision Forgings Limited is an India-based firm that manufactures precision-forged bevel gears and differential case components for automotive and other applications. The company manufactures differential assemblies, differential gears, and other products.

With a market capitalization of Rs 29,351.31 crore, the shares were trading at Rs 472.10 per share, decreased around 5 percent as compared to the previous closing price.

Mexico contributes to 2 percent of the company’s overall revenue and while the bulk of the value addition of the product happens in India, Mexico is used more as an assembly base. If the end OEM shifts their production to the US, this can be transferred to directly cater to the US facilities. 

Looking into the company’s financial condition, revenue jumped by 10 percent from Rs 787 crore in Q3FY24 to Rs 868  crore in Q3FY25, however, during the same period of time, net profit magnified by 12 percent from Rs 134 crore to Rs 151 crore.

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2. Samvardhana Motherson International Ltd

Samvardhana Motherson International Limited is a full system solutions provider to customers in automotive and other industries. It has a diversified product portfolio, which includes electrical distribution systems, fully assembled vehicle interior and exterior modules, etc.

With a market capitalization of Rs 83,729.26 crore, the shares were trading at Rs 119.00 per share, decreased around 4 percent as compared to the previous closing price.

As per Brokrage, Mexico contributes to 4 percent of the company’s overall revenue, Elara also added that it remains to be seen how OEMs shift their production base to avoid the rise in vehicle prices in the US owing to the tariffs. 

Looking into the company’s financial condition, revenue jumped by 8 percent from Rs 25,644 crore in Q3FY24 to Rs 27,666  crore in Q3FY25, however, during the same period of time, net profit magnified by 55 percent from Rs 633 crore to Rs 984 crore.

Written by Abhishek Singh

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