Only 3 Nifty Auto stocks zoom this year. Will Tesla’s India entry keep Motown in red?
3 weeks ago

Only 3 Nifty Auto stocks zoom this year. Will Tesla’s India entry keep Motown in red?

Live Mint  

Indian auto stocks have been under pressure, with the Nifty Auto index losing 7 per cent in February so far and showing a similar decline in 2025 YTD. Additionally, external factors such as the Donald Trump administration's proposed 25 per cent tariff on automobile imports to the U.S. and reports of Tesla's potential entry into India have further weighed on sentiment. Reports suggest that the government is considering lowering import duties on EVs—an initiative believed to be aimed at attracting Tesla following Prime Minister Narendra Modi’s discussions with Elon Musk in the U.S. HSBC noted that the proposed 15 per cent import duty on EVs is significantly lower than the 43-50 per cent GST imposed on locally produced ICE passenger vehicles, which also incur an additional 13 per cent road tax. Tesla unlikely to disrupt domestic leaders According to brokerages CLSA and Nomura Tesla's entry into India is unlikely to significantly impact local leaders like Maruti Suzuki or Tata Motors but could benefit key suppliers such as Sona Comstar, Sansera Engineering, and Motherson Sumi.

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