The automobile industry in India is in the middle of some waves of chaos as the segment is looking at the towering and concerning wall of Trump's tariffs on automobiles.
Trump Tariffs Spook Auto Shares
Mahindra and Mahindra, one of the biggest carmakers in the country, a company that was the second biggest seller of vehicles in February, saw its shares drop on Friday, March 28.
Earlier this week, Donald Trump, while sitting behind the Resolute Desk in the Oval Office announced another set of crucial tariffs.
This time, Trump took aim at another critical industry that is currently in the middle of transition itself, the auto sector.
Trump, while calling the whole process a day of liberation, said that he will impose a flat 25 per cent tariff on all automobiles made outside of the United States, or in other words, the US will levy tariffs on all cars imported into the United States.
As a result of this announcement, major auto stocks around the globe crashed, suffering a major decline in their overall value.
Mahindra was one of them, and the company shares continued decline further. While making losses of under 0.30 per cent in the intraday trade yesterday (March 27), the company shares have taken a deeper cut at the bourse today.
Mahindra & Mahindra Shares In Red
The Mumbai-based automaker, renowned for its SUVs, opened the day's trade at Rs 2,735.80, higher than the previous day's closing.
However, things quickly took a turn for a different development, as the company shares entered red. As the day's trade progressed, the decline only continued further.
At the time of writing, the shares of Mahindra had already suffered an erosion of 2.72 per cent or Rs 74.30. This took the overall value of the company shares to Rs 2,658.70 per piece.
This has taken the overall decline in the value suffered in the past 5 trading sessions to Rs 91.20 or 3.32 per cent.
The tariffs are slated to kick in from next week, and the imposition of the same, could induce more volatility in the segment and the market at large.
