India’s auto sector faced a mixed day in the stock market today. The Nifty Auto index, which tracks the performance of major car companies, fell nearly 3% during trading. This drop was mainly driven by sharp declines in the share prices of Mahindra & Mahindra (M&M) and Tata Motors.
M&M’s stock price took a tumble, falling nearly 8% to its lowest level since early June. This drop came after the company announced price cuts on some of its vehicles. Tata Motors also saw its share price decline by more than 2%, reflecting a similar strategy of reducing prices on their SUVs.
While the overall auto sector witnessed a slowdown, Maruti Suzuki defied the trend. The company’s share price surged over 3%, reaching a record high. This positive performance can be attributed to a recent policy change in Uttar Pradesh, a key Indian state. The state government announced a complete waiver of registration fees for strong hybrid cars . This move puts hybrid vehicles on par with electric vehicles (EVs) in terms of registration costs, making them a more attractive option for buyers. The waiver is expected to bring down the on-road price of Maruti Suzuki’s hybrid cars by 8-10%, potentially boosting their sales. Additionally, West Bengal also implemented a reduction in registration fees for CNG cars, potentially benefiting Maruti Suzuki which has a strong presence in the CNG segment.
What This Means for You
Today’s news highlights the current state of India’s auto sector. While some companies are facing headwinds, others are finding opportunities. For car buyers, this could translate into more competitive pricing, especially for hybrid and CNG vehicles. However, it’s important to stay informed about overall market trends and individual company performance before making any car purchase decisions.