Motherson shares tank 9% on Trump’s tariffs on Mexico

Shares of Samvardhana Motherson International Ltd fell as much as 9% in intraday trade on Monday after US President Donald Trump announced tariffs on goods imports from Mexico, a country which contributed 4% to the auto component maker’s revenues in FY24.

The Trump administration imposed 25% tariffs on Mexico and Canada on Saturday.

Reacting to the development, shares of Samvardhana Motherson opened lower at ₹141.40 against their previous closing price of ₹142.60. The stock tumbled 9% to hit a low of ₹129.95 on the BSE, bringing down the company’s market cap to around ₹91,000 crore.

For Samvardhana Motherson, exports and overseas units account for over 80% revenues. The company’s biggest business is modules and polymer products followed by wiring harness, vision systems, integrated assemblies and emerging businesses.

Other auto component stocks like Sona BLW Precision Forgings and Uno Minda were also trading in the red.

Shares of Sona BLW declined 5.14% to hit a 52-week ,low of ₹477.60 on the BSE as against its previous closing price of ₹503.45, dragging down the auto parts maker’s market cap to under ₹30,000 crore.

Mexico contributes around 2% to Sona BLW's total revenues. The country is works as an assembly base for its shipments of the U.S. market. Sona BLW reported a 12% year-on-year rise in revenues for the quarter ended December 31, 2024 while its net profit 14% to ₹151 crore in Q3 FY25.

Battery electric vehicles contributed 39% to its Sona BLW’s total revenues. It remains to be seen whether Trump’s revocation of former US president Joe Biden’s EV mandate would affect the auto component manufacturer.

Founded in 1995, Sona Comstar, headquartered in Gurugram, India, is a global supplier with manufacturing and assembly facilities across India, the US, Serbia, Mexico, and China. It is a leading supplier of driveline and traction motor solutions to the fast- growing global electric vehicle (EV) market.

Shares of Uno Minda tumbled as much as 5% in intraday trade today to hit a low of ₹948 on the BSE, taking its market cap to around ₹55,000 crore. However, unlike Samvardhana Motherson, only 13-14% of Uno Mindia's revenues come from global exports. This includes revenue from assembly and manufacturing in global operations.