Auto stocks were in deep red on Tuesday as fears grew over possible new US tariffs. The Nifty Auto index dropped for the third day straight, with all 15 listed auto companies trading in the red.
This fall came just a day after US President Donald Trump said a trade deal with India was “close.” But his tone made markets nervous. Trump warned that countries not aligned with US trade terms were being sent letters outlining new tariffs.
Among the nations that received these letters were Bangladesh, Japan, South Korea, Thailand, and others. India has not officially received one yet, but the fear of being next hit investor mood hard.
Auto stocks dip across the board
TVS Motor was the biggest loser, down 2 percent to ₹2,821 on the NSE. Bajaj Auto slipped nearly 1.85 percent. Hero MotoCorp, Mahindra & Mahindra, Maruti Suzuki, and Ashok Leyland also saw heavy selling.
Even Samvardhana Motherson International dropped 1.62 percent. Tata Motors also slipped after its UK-based unit Jaguar Land Rover (JLR) reported weak sales numbers.
JLR‘s wholesales fell 10.7 percent year-on-year in the June quarter. That’s not all. Compared to the March quarter, sales fell 21.7 percent. The company said it was due to the phase-out of old Jaguar models and the effect of US tariffs.
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What’s spooking the market?
Trump’s warning on tariffs is the key worry. Though he praised India and hinted at a good trade deal soon, investors are staying cautious.
Auto companies depend a lot on global trade. New US tariffs can raise costs and impact exports. That’s why even a small signal from Washington can shake the market.
Third straight fall for Nifty Auto index
Tuesday marked the third session of continuous loss for the Nifty Auto index. It dropped almost 1 percent, making it one of the worst-performing sectors of the day.
This signals a bigger concern — investors are not confident in the short-term outlook of the auto industry.
What next?
All eyes are now on the India-US trade talks. If a deal is struck soon, markets may bounce back. But till then, auto stocks may remain under pressure.
Experts advise caution. With global cues getting tricky, especially from the US, traders should watch tariff updates closely.
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