Samvardhana Motherson, Sona BLW: Why auto ancillary stocks are in focus on Tuesday, January 20

The stocks will likely be in focus after the European stocks, including autos, took a heavy beating in the overnight trade following Trump's latest announcement on tariffs.

European stocks traded lower on Monday as investors reacted to US President Donald Trump’s threat to impose higher tariffs on European nations if they oppose his proposal to purchase Greenland.

The pan-European Stoxx 600 index was down a preliminary 1.23% by the London close, with most sectors ending the session in negative territory.

Market sentiment weakened after Trump announced on Saturday that eight European allies could face escalating tariffs if an agreement is not reached to allow Washington to “buy” Greenland, a semi-autonomous territory of Denmark. The proposed tariffs would begin at 10% on February 1 and rise to 25% by June 1.

In a post on his social media platform Truth Social, Trump said goods exported to the US from eight NATO member countries would be subject to higher tariffs “until such time as a deal is reached for the complete and total purchase of Greenland.”

"European carmakers and luxury goods stocks were among the hardest hit. The Stoxx Europe 600 Automobiles & Parts Index fell 2.22%. Volkswagen slid 2.82%, Porsche declined 2.68% after paring earlier losses, and BMW dropped nearly 3.74%," the CNBC report added.

Indian auto ancillary companies

Similarly, both Bharat Forge and Bosch serve European carmakers, acting as key suppliers for major automotive OEMs in the region.