6 days Ago By [email protected] (Avishek Banerjee)
Updated April 15th 2025, 13:29 IST Buoyed by these tariff relaxation, Indian auto shares saw broad-based gains. The Nifty Auto index jumped 3.3%, marking its strongest single-day performance sinc Indian auto stocks rallied sharply on Tuesday, with the Nifty Auto index climbing over 3%, following remarks by US President Donald Trump suggesting potential relief from steep import tariffs on foreign automobiles and components.
Speaking at the White House on Monday, Trump said he was considering a revision to the 25% tariffs currently imposed on vehicles and auto parts imported from countries such as Mexico, Canada, and others. These duties, introduced in late March, had raised concerns among automakers over increased costs for those operating in or exporting to the U.S.
Acknowledging industry apprehensions, Trump remarked that car manufacturers "need a little bit of time” because they’re going to make [the cars] here, indicating a possible softening of trade restrictions in the near term. Buoyed by these developments, Indian auto shares saw broad-based gains. The Nifty Auto index jumped 3.
3%, marking its strongest single-day performance since early January. Analysts believe a rollback of tariffs could enhance cross-border trade and boost margins for auto companies with “significant exposure” to overseas markets. Also Read: Donald Trump Tariffs Boon for Auto Industry, claims Skoda Auto VW official | Republic World Tata Motors, Samvardhana stocks on an upsurge Tata Motors rose 5%, driven by optimism around its premium unit Jaguar Land Rover (JLR), which earns roughly a quarter of its revenue from the U.
S. market. It was one of the top gainers on both the Nifty Auto and the broader Nifty 50 indices, the latter of which rose over 2%.
Among component makers, Samvardhana Motherson led the pack with a 7.7% surge. Bharat Forge and Sona BLW Precision Forgings also registered strong gains, up around 6% and 7.
3%, respectively. The Nifty Auto index, which had slipped nearly 11% since the tariff announcement in March, has now pared its losses to just 2.5%.
Companies with significant US exposure have narrowed their stock declines to between 6% and 12%, with Samvardhana showing the most resilience and Tata Motors the largest drawdown. Trump’s comments came shortly after his decision to pause “reciprocal” tariffs on several countries for 90 days—an interim relief that global suppliers have welcomed. In a note last week, Nomura said Indian automotive suppliers are likely to benefit as U.
S. firms seek alternatives to Chinese sources amid heightened trade tensions between Washington and Beijing. According to data from LSEG, ten of the fifteen Nifty Auto stocks currently hold a “buy” rating, with the rest marked as “hold.
” More clarity from the White House is expected in the coming days, which could further shape global investor sentiment in the auto sector. Published April 15th 2025, 13:29 IST.
