The automotive sector experienced significant market turbulence early Thursday, with the Nifty Auto index registering a substantial decline of 0.90 per cent during initial trading hours at around 10.20 am. Tata Motors emerged as the most heavily impacted, witnessing a dramatic 5.39 per cent fall in its share price, signaling investor concerns about potential global market repercussions from the latest U.S. trade policy developments.
Samvardhana Motherson International also felt the market’s tremors, with its shares dropping 2.45 per cent, reflecting the broader sentiment of uncertainty surrounding the automotive sector. Ashok Leyland followed a similar trajectory, experiencing a 1.48 per cent decline, while Mahindra & Mahindra saw a more modest but still notable 0.47 per cent reduction in its market valuation.
The sharp downturn is directly attributed to President Trump’s unexpected announcement of a 25 per cent tariff on auto imports, a move that has sent ripples through global automotive markets. The current market sentiment suggests continued volatility, as stakeholders assess the potential long-term implications of these trade policy changes on the global automotive ecosystem.