Auto Stocks Slide Amid Tariff Worries; TVS Motor Company, Bajaj Auto, Hero MotoCorp See Losses

Market Performance

On Tuesday, auto stocks experienced a noticeable decline, weighed down by concerns over US tariff-related uncertainty.

• The Nifty Auto Index dropped nearly 1%, ranking among the worst-performing sectoral indices of the day.
• This was the third straight session of decline for the auto index.
• All 15 constituents of the index were seen trading in the red.

The weakness in the auto sector reflected broader investor caution, as global trade developments took centre stage.

Main News: US Tariff Concerns Impact Indian Auto Sector

US President Donald Trump hinted at the final stages of a trade deal with India, following the signing of agreements with the UK and China.

• Trump emphasised that countries not aligned with US trade terms had received letters outlining potential tariff implementations.
• The list includes nations like Bangladesh, Cambodia, Indonesia, Japan, Malaysia, South Korea, and Thailand.

Although India wasn't explicitly listed, the tariff-related remarks caused jitters across export-dependent sectors, such as the auto industry.

Company-Wise Impact on Share Prices

Amid heightened trade uncertainty, leading Indian auto firms saw significant share price dips during Tuesday's trading session:

• TVS Motor Company's share price dropped 2%, closing at ₹2,821 on NSE.
• Bajaj Auto share price slipped 1.85%.
• Samvardhana Motherson International declined 1.62%.
• The share prices of Hero MotoCorp, Mahindra & Mahindra, Maruti Suzuki India, and Ashok Leyland also faced selling pressure, each falling by up to 1%.

This widespread decline indicates a sector-wide reaction to global trade volatility.

Tata Motors & JLR: Additional Drag

Adding to the sector's weakness:

• Tata Motors' share price dipped following Jaguar Land Rover's (JLR) quarterly data.
• JLR wholesales for the June quarter stood at 87,286 units, down 10.7% YoY.
• Compared to the preceding quarter, this marks a sharp decline of 21.7%.

The drop is linked to the phase-out of older Jaguar models and fresh tariff implications from the US.

Summary

The Indian auto sector faced heavy selling on Tuesday, as investors reacted to rising concerns over global tariffs. Key stocks, including TVS Motor Company, Bajaj Auto, Hero MotoCorp, Mahindra & Mahindra, Maruti Suzuki India, and Ashok Leyland, recorded notable losses, aligning with the broader decline in the Nifty Auto Index.

As tariff talks develop globally, market volatility is likely to continue affecting export-sensitive sectors, such as the auto industry, with investors closely monitoring policy cues and international developments.