Tata Motors, Samvardhana Motherson Drive Nifty Auto Rally As Trump Hints At Possible Tariff Reprieve
President Trump on Monday said that he is looking to help car companies that need more time to move their production to the US.
Nifty Auto stocks rose on Tuesday after US President Donald Trump hinted at removing levies on imported vehicles and auto parts. The gains were led by Samvardhana Motherson International Ltd., Tata Motors Ltd. and Bharat Forge Ltd.
President Trump on Monday said that he is looking to help car companies that need more time to move their production to the US.
“I’m looking for something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time because they’re going to make them here,” Trump said without elaborating on the potential plans.
NSE Nifty Auto rose the most in two months after President Trump's potential indication on removing tariff on imported vehicles and auto parts.
Tata Motors was also among the top gainers on the Nifty 50 index and rose 5.59%, while Samvardhana Motherson rose 10% and Bharat Forge was up nearly 7% in early trade.
Mahindra and Mahindra Ltd. rose over 4.23%, while the shares of TVS Motor Ltd., Bajaj Auto Ltd. rose over 3%. Apollo Tyre Ltd., Ashok Leyland Ltd., Bosch Ltd., Eicher Motors Ltd., Exide Ltd. and Hero Moto Corp. were also in the green.
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The other auto companies like Sona BLW Ltd., Hyundai Motors Ltd. and Atul Auto Ltd. were also up nearly 8%, 2%, 3%, respectively, on Tuesday.
Not just the Indian auto companies but companies across Asia also rose on Tuesday. Japanese manufactures Toyota Motor Co., Honda Motor Co. and Suzuki Motor Corp. rose over 5% in early trade in Tokyo. Korean maker Hyundai Motor Co. and its affiliate Kia Corp. also rose over 4%.
Trump earlier this month had imposed a 25% tariff on foreign automakers. The levy stems from his assertion that countries like India, Vietnam, and Thailand impose excessively high tariffs on US goods, thus prompting this retaliatory measure. The tariff is applicable on fully assembled cars immediately.
