Tata Motors shares experienced a significant surge on May 8, 2025, driven by optimism surrounding a potential trade agreement between the United States and the United Kingdom. Early trading saw shares rise by over 3%, with shares trading 1.94% higher at Rs 693.50 as of 9:20 AM.
Reports suggest that the US is poised to announce a trade deal, as indicated by a New York Times report and a post by US President Donald Trump on Truth Social. Trump mentioned hosting a press conference at 10 AM Washington time on Thursday to discuss a "major trade deal" with representatives from a "big and highly respected country".
Confirmation of a US-UK trade deal could greatly benefit Jaguar Land Rover (JLR), a key subsidiary of Tata Motors, given that the US market generates nearly 20% of its revenue. In April 2025, JLR temporarily paused vehicle shipments to the US following the imposition of a 25% tariff on all auto imports. While shipments have reportedly resumed, neither JLR nor Tata Motors has released an official statement.