Auto Stocks Slide Up to 7% on Trump Tariffs; Tata Motors, Samvardhana Motherson Among Top Losers
Auto stocks witnessed a sharp decline of up to 7% following concerns over potential tariffs imposed by former US President Donald Trump. Prominent auto giants Tata Motors and Samvardhana Motherson emerged as the top laggards in the sector.
Impact on Auto Sector
The renewed threat of import tariffs on vehicles and auto components sent shockwaves across the sector, leading to a selloff. The uncertainty surrounding trade policies and higher tariffs could significantly impact exports and profitability, especially for Indian auto companies with a global presence.
Stock Performance
- Tata Motors saw a drop of nearly 6.5%, reflecting investor anxiety over potential losses in export markets.
- Samvardhana Motherson International plunged close to 7%, driven by fears of reduced demand and supply chain disruptions.
- Other major auto stocks, including Maruti Suzuki and Mahindra & Mahindra, also witnessed a downward trend, though with relatively smaller declines.
Market Reaction
Investors reacted negatively to Trump’s tariff rhetoric, fearing long-term consequences for the auto industry. Analysts warn that persistent trade tensions could dampen growth prospects, especially for companies relying on US markets.
The situation remains dynamic, and market watchers are closely monitoring developments that may further impact the sector’s performance.