Auto Sector in Turmoil: M&M Tanks 6% as Tesla Effect Hits Markets

On Friday, Indian auto stocks suffered a heavy battering due to reports suggesting that the government might cut import duties on electric vehicles (EVs) from the current 110% to 15%. Should the policy work, it would facilitate the entry of Tesla into the Indian market, leading to stiff competition among domestic automakers. M&M led the decline with a 6% drop in its stock price, marking its steepest plunge in the last seven months. Other notable losers included TVS Motor Company, Exide Industries, Apollo Tyres, and Tata Motors which fell 2%-4%. The BSE Auto Index slid down 2.6% to end at 48,135.32. Analysts attribute the selling to fears of stiffer competition and possible market share erosion for domestic makers. 

 

Source: NewsDrum