NSE Nifty Auto Index stocks fell on Thursday after United States President Donald Trump 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.
The POTUS had further announced a 26% duty on Indian imports. Notably, India's weighted average tariff rate on American imports is 12%, as compared to the US' previous 3% on Indian goods. He had also announced a 10% baseline tariff on all countries.
Shares of Maruti Suzuki India Ltd., Mahindra & Mahindra Ltd., Tata Motors Ltd., Bajaj Auto Ltd., Eicher Motors Ltd., TVS Motor Co., and Hyundai Motor India Ltd. fell in early trade, as investors assessed the impact.
Shares of Bajaj Auto and Tata Motors fell over 2% around market open. Tata Motors' UK-based arm, Jaguar Land Rover, counts the US as a key market.
Automakers' Share Prices Decline
As of 09:15 a.m. Nifty Auto and the benchmark Nifty 50 were trading at 1.47% and 0.80%, respectively:
Maruti Suzuki fell as much as 0.73%
Mahindra & Mahindra fell 1.41%
Tata Motors declined 2.62%, with Jaguar Land Rover exposed to US tariffs.
Bajaj Auto dropped 2.72%
Eicher Motors slipped 1.69
TVS Motor was down 1.95%
Hyundai Motor India fell 1.51
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
