Bharat Forge to Tata Motors: Why did auto stocks fall in trade on Thursday?

Bharat Forge and Samvardhana Motherson International shares fell over 3 per cent each after Trump imposed a 25 per cent tariff

Shares of Indian auto and auto ancillary stocks took a beating on Thursday after US President Donald Trump imposed a 25 per cent tariffs on domestic exports to the country, starting Friday. 

 

Shares of Bharat Forge and Samvardhana Motherson International fell over 3 per cent each, while Tata Motors and Balkrishna Industries fell over 2 per cent each. All 15 stocks in the auto stocks gauge -- Nifty Auto -- declined, with the index itself down as much as 1.46 per cent during the session. 

 

As of 9:35 AM, the Nifty Auto index was down 0.2 per cent, compared to a 0.58 per cent decline in the benchmark Nifty50 index. Bharat Forge (down 2.80 index) led the fall, followed by Samvardhana Motherson (down 1.8 per cent), Tata Motors (down 1.7 per cent), and Balkrshina Industries (down 1.4 per cent).  

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Why did auto stocks fall? 

TheTrump administration slapped India with a higher-than-expected 25 per cent tariff by the US, starting Friday.  US President Donald Trump said that India has tariffs that are “among the highest in the World," and are the most "strenuous and obnoxious non-monetary trade barriers of any country."  He further threatened additional penalties over India's energy purchases from Russia. 

 

As things stand now, India faces one of the highest tariffs that the US has imposed, while Vietnam faces 20 per cent tariffs, Indonesia has 19 per cent, and Japan has 15 per cent. Brazil got a reprieve on the implementation of 50 per cent levies. 

 

Specifically on auto, India exported $2.2 billion worth of auto parts and components to the US in 2024. Finished vehicle exports remain marginal at $10 million, but parts shipments will now face the full 25 per cent tariff.

 

According to a  Barclays Research report, India's auto and vehicle exports to the US consist mainly of auto accessories/parts ($2.6 billion in 2023), and are among the top 10 exports to the US.

 

As per reports, Sona BLW and Ramkrishna Forgings are among the top auto parts makers that the highly exposed to revenue from the US. This is followed by Bharat Forge and Tata Motors. 

Mahindra and Mahindra Q1 results

M&M shares fell despite posting a 24 per cent year-on-year (Y-o-Y) rise in consolidated profit after tax (PAT) to ₹4,083 crore in the first quarter of the financial year 2025-26 (Q1FY26). 

 

The consolidated revenue went up by 22 per cent to ₹45,529 crore. Auto revenues were up by 31 per cent to ₹25,999 crore, while the farm sector revenue was up 12 per cent to ₹10,892 crore.