Nifty Auto Falls Below 25,100 as Auto Stocks Slide; TVS Motor, M&M, Eicher Motors top Losses

Against this weak market backdrop, the Nifty Auto was the worst-affected index on Thursday. The Nifty Auto index opened at 25,688.30 and faced selling pressure throughout the session, touching an intraday low of 25,046.00. The index eventually settled at 25,098, down 828 points or 3.19% from the previous close of 25,926.

Leading automakers such as M&M, TVS, and TMPV were among the biggest drags on the index. These shares were down around or more than 4%, with weakness broad‑based across the auto pack.

Why Auto Stocks Tumbled Today?

The weakness was driven by ongoing escalations in the Middle East, which reignited fears over energy supply disruptions. Additionally, these developments sent global crude oil prices sharply higher. The Brent crude rose above USD 100 a barrel on the day.

With crude and energy prices high, the cost of manufacturing, especially for fuel‑intensive auto production, has increased. This has put pressure on the short‑term profits of auto companies.

Automakers rely heavily on gas to make various parts. Gas is used a lot in paint shops, furnaces for forging and casting, and heat treatment of metal components.

Additionally, it is believed that, amid market volatility and slowing global growth, demand for discretionary items such as vehicles is seen as weak.

Sharp Losses Hit Leading Auto Shares

The auto sector witnessed broad-based losses today, with several leading companies hitting the brakes amid a sharp market pullback. TVS Motor led the decline, falling 192.80 points (5.35%) to Rs 3,408.00. TVS is one of India’s leading two‑wheeler and three‑wheeler manufacturers, known for its motorcycles, scooters, and commercial vehicles.

M&M slipped 139.10 points (4.39%) to close at Rs 3,029.10. M&M is a major Indian multinational, producing SUVs, tractors, and commercial vehicles, with a strong presence in both rural and urban markets.

Eicher Motors dropped 284.00 points (3.92%) to Rs 6,969.50. Eicher is the parent company of Royal Enfield, a well-known manufacturer of motorcycles and commercial vehicles.

Apart from these three, other major auto companies also saw losses, with Maruti down 502.00 points (3.72%) to Rs 12,995.00, Ashok Leyland falling 6.66 points (3.61%) to Rs 178.00, Hero MotoCorp slipping 184.50 points (3.31%) to Rs 5,390.50, and Tata Motors PV declining 11.05 points (3.30%) to Rs 324.30.