SAMIL Assures Investors Amid Trump’s Tariff Threat on Auto Imports

Samvardhana Motherson International Ltd (SAMIL) moved to calm investor concerns after its shares fell following news of Donald Trump's proposal for a 25% tariff on foreign auto imports. The company emphasized that much of its U.S. output is either locally produced or qualifies under the US-Mexico-Canada Agreement (USMCA), reducing its exposure to the proposed import duties.

On March 27, SAMIL shares dropped 2.22% to ₹132, mirroring a broader decline across the auto and auto component sector. Stocks like Tata Motors and Sona BLW Precision Forgings recorded sharper losses, driven by fears over cost escalation and supply chain uncertainty for exporters.

“No Material Impact Expected” Says SAMIL

In a regulatory update, SAMIL stated that its widespread manufacturing presence in the U.S. and Europe shields it from significant tariff effects. Unlike firms heavily reliant on exports, Motherson’s local production base serves as a protective buffer against potential import-related disruptions.

CLSA Maintains Optimism, Sets ₹167 Price Target

Despite short-term volatility, CLSA maintained an ‘outperform’ rating on SAMIL, setting a price target of ₹167, suggesting a 23% upside from current levels. The brokerage anticipates:

11% revenue CAGR between FY25-27

$16 billion in revenue by FY27

EBITDA margins of 9.5%

Tariff Implementation Looms as Industry Watches Closely

With tariff enforcement expected from April 3, automakers and component suppliers are weighing their next steps—whether to absorb the added costs, pass them on to customers, or ramp up local manufacturing.

As of the latest close on Friday, SAMIL shares stood at ₹131, down 0.72% from the previous day. The stock has declined 16% year-to-date, reflecting investor caution amidst global trade uncertainties.

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