MUMBAI: Tata Group has initiated cost assessment across its businesses following the White House’s reciprocal tariffs.
At the annual Tata Group CEOs’ conclave in Dubai, chairman N Chandrasekaran addressed global geopolitical uncertainties and economic changes. The event was also attended by Tata Trusts chairman Noel Tata and his three children, marking his first major internal gathering since becoming chairman of the philanthropic organisations overseeing the Tata Group in Oct 2024.
The US represents a significant market for Tata Group’s diverse portfolio. Jaguar Land Rover (JLR), the Britain luxury carmaker, has halted shipments to the US and is working to mitigate the effect of US President Donald Trump’s 25% tariff. JLR sells 4 lakh vehicles annually, with US exports accounting for almost a quarter of total sales.
Tata Steel UK is negotiating new trading arrangements with customers in the US while addressing concerns about low-priced steel entering Britain from international sellers seeking alternative markets following Trump’s new tariffs.
At the conclave, each Tata Group CEO presented their company’s previous fiscal year performance, challenges, and future expectations.
The group’s revenue source has increasingly shifted towards India, contrasting with the previous era under former chairman Ratan Tata when international markets generated two-thirds of revenue. Despite substantial investments in steel, semiconductor and electronics sectors in India, the US remains significant for Tata Group’s operations.
The new tariffs raise concerns about reduced IT spending by US firms, potentially affecting TCS. Tata AutoComp’s export business faces increased manufacturing costs due to these tariffs. At the conclave, Chandrasekaran expressed confidence in India’s position, citing strong consumption levels among other factors.