Auto stocks down amid uncertainty over US-India trade deal outcome; Tata Motors shares fall 3%, Bajaj Auto slips 2%

The shares of auto stocks, including TVS Motors, Bajaj Auto, Bharat Forge, Bosch, Motherson, Mahindra & Mahindra, fell as much as 3% on the National Stock Exchange (NSE) on Tuesday, July 8.

At the time of writing, the NIFTY Auto index was trading 175.05 points, or 0.73%, lower at 23,768.85. These export-sensitive stocks are reeling under mounting pressure as President Donald Trump on Monday remarked that the US and India are close to signing a trade deal.

"Now, we've made a deal with the United Kingdom, we've made a deal with China… We're close to making a deal with India. Others we met with and we don't think we're going to be able to make a deal, so we just sent them a letter. If you want to play ball, this is what you have to pay," Trump said on Monday.

This follows the US sending the first tranche of warning letters to several countries.

Mounting pressure

The US has been escalating pressure on countries with what the White House has been calling “final notices,” which were sent to 14 countries on Monday. The formal letters, signed by President Donald Trump, outlined the tariffs the countries would face from August 1 if they failed to sign a deal with the US.

The White House announced 25% tariffs on Japan, South Korea, Kazakhstan, Malaysia and Tunisia; 30% on South Africa and Bosnia and Herzegovina; 32% on Indonesia; 35% on Bangladesh and Serbia; 36% on Cambodia and Thailand; and 40% tariffs on Laos and Myanmar.

Tariff threat on BRICS nations

Late Sunday, the American President announced that he would impose an additional 10% tariff on the BRICS nations, after the bloc condemned the tariff increase at a summit in Brazil.

BRICS, originally comprising Brazil, Russia, India, China, and South Africa, expanded in 2024 to include Egypt, Ethiopia, Iran, and the United Arab Emirates, with Indonesia joining in 2025.

Shares of TVS Motors fell as much as 2.67% to an intra-day low of ₹2,800 apiece and Bharat Forge slipped 2.14% to ₹1,278.30. Bajaj Auto stock also declined by 2.04% to a low of ₹8,291 apiece. Furthermore, Bosch Ltd was trading 1.65% lower at ₹35,450 on Tuesday.