Auto Stocks Slide as Government Considers Slashing EV Import Duties

Auto stocks plummeted significantly, with Mahindra & Mahindra leading the decline following news of potential reduced import duties on electric vehicles in India. Reports of Tesla's impending market entry aggravated the market sentiment, impacting benchmark indices negatively and intensifying competitive pressures in the automotive sector.

Auto stocks witnessed a sharp decline on Friday, with Mahindra & Mahindra shares plunging 6% following reports of the government considering a reduction in import duties on electric vehicles.

Adding to the pressure, companies like TVS Motor, Exide Industries, and Tata Motors also saw their shares dip.

The automotive sector braced for increased competition with Tesla reportedly preparing to start retail operations in India, further influencing the BSE auto index, and setting a negative tone for the day's trading.