Auto Stocks Jump Up to 3% on Hopes of US-India Trade Talks Picking Up Soon
A big US-Japan trade deal is making headlines—and it’s already shaking up markets in Asia. On July 23, shares of top Indian auto companies like Tata Motors, Maruti Suzuki, and Mahindra & Mahindra (M&M) jumped up to 3 percent in intraday trade.
The rally came after the United States and Japan signed a fresh trade agreement that cuts tariffs on Japanese cars entering the US. The news sparked fresh hope that India too could soon strike a similar deal with the US.
Why This Deal Matters
The US-Japan trade deal is a big win for Japan. Reports say the US will now cut import taxes on Japanese cars from 25% to 15%. This will help Japan sell more cars to the US, which is already its biggest export market for vehicles.
The Tokyo Stock Exchange loved the news. Big Japanese brands like Toyota, Nissan, and Honda saw their stocks surge. The Nikkei index went up by 2%.
And this wave didn’t stop at Japan.
Indian Stocks Ride the Global Rally
Indian automakers quickly joined the party. Tata Motors, M&M, Maruti Suzuki, Bajaj Auto, TVS Motor, and Hero MotoCorp were all up by around 1–3 percent by 10:10 am. The Nifty Auto index also climbed by 1 percent in the morning.
Since the start of 2025, Nifty Auto is already up over 4 percent. This new trade news has only added to the optimism.
Even though India hasn’t yet signed a deal with the US, investors are hopeful. There’s buzz that talks are happening behind the scenes. Both the US and Indian governments seem open to progress in the coming weeks.
A trade deal could mean lower taxes for Indian products going to the US and easier access to American tech and goods here. This could boost auto exports and even make cars cheaper in the long run.
What Trump Said (Or Didn’t)
US President Donald Trump, as usual, shared his excitement in a short Truth Social post. He didn’t give full details, but a Reuters report filled in the blanks. The new tariffs will give Japanese companies a strong edge, especially before August 1, when some heavier duties were set to kick in.
What to Watch Next
All eyes are now on whether India can land a similar trade pact. If that happens, it could unlock new business for automakers and strengthen India’s global ties.
For now, the US-Japan trade deal is doing its job: lifting spirits, markets, and maybe even setting the stage for something bigger.
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