Samvardhana Motherson International Ltd (SAMIL) has sought to allay investor concerns after its shares tumbled amid fears of Donald Trump’s proposed 25% tariff on foreign car imports.

The company stated that a significant part of its US business is either locally manufactured or qualifies under the US-Mexico-Canada Agreement (USMCA), reducing exposure to potential tariff hikes.

Shares of SAMIL dropped 2.22% to ₹132 on March 27, alongside a broader decline in auto and auto component stocks, with Tata Motors and Sona BLW Precision Forgings also slipping up to 7%. Investors fear that higher tariffs could disrupt global supply chains, especially for component makers reliant on exports.

However, SAMIL clarified in a regulatory filing that it “does not expect a material impact” on its business. Since Motherson has built significant local manufacturing facilities in both the US and Europe, it is less vulnerable to import tariffs compared to component makers relying solely on exports.

Also read: Trump Tariff Impact: From Tata Motors to SAMIL, shares of Indian automakers fall up to 8%

Despite market jitters, brokerage firm CLSA maintained an ‘outperform’ rating on SAMIL, setting a target price of ₹167, implying a 23% upside. CLSA projects the company’s revenue to grow at 11% CAGR over FY25-27, touching $16 billion by FY27, with EBITDA margins at 9.5%.

Among 25 analysts covering the stock, 21 maintain a ‘buy’ recommendation, while two each suggest ‘hold’ and ‘sell.’ SAMIL’s stock has already corrected 35% in the last six months, largely due to macroeconomic concerns and tariff risks.

While uncertainty around US trade policies persists, analysts believe SAMIL’s localised production strategy and USMCA compliance could shield it better than competitors reliant solely on exports.