Nifty Auto falls nearly 4% amid stock market crash; Tata Motors, M&M and Maruti lose 2.2-7.4%

The Nifty Auto index fell close to 4 per cent in the intraday trading session to 24,706.50 points on Monday, August 5, amid the stock market crash. The index has reached its lowest level since July 19.

Index constituents like Tata Motors dropped 7.4 per cent to ₹1,015.45 per share on Monday, compared to ₹1,096.65 at the previous close. Tata Motors shares dragged down the Nifty Auto index by 1.17 per cent.

Other Index laggards for the day were Mahindra and Mahindra, which fell 2.24 per cent to ₹2,688 on Monday, compared to ₹2,749.65 at the previous close. Maruti Suzuki India Limited also fell 4 per cent to ₹12,217, compared to ₹12,726.40 at the previous market close.

Mahindra & Mahindra and Maruti Suzuki India dragged the Nifty Auto index down by 0.49 per cent and 4 per cent on August 5, respectively.

Mint reported earlier that the stock markets fell on August 5 over fears of a potential United States recession, which made global investors move away from riskier assets and fuelled the sharp sell-off in stocks in both Western and Eastern equity markets.

The Nifty 50 index fell 2.68 per cent to 24,055.60 points on Monday, compared to 24,717.70 points at last week's market close.

This comes at a time when Tata Motors is expecting constrained production in the second and third quarter of the financial year 2024-25 due to the shutdown of the annual power plant and floods affecting its key aluminium supplier, according to an exchange filing by the company.

Maruti to focus on low-cost cars

On the other hand, Maruti Suzuki India announced that the brand will continue to focus on the low-cost car segment to cater to budget-concerned customers, despite the segment underperforming in sales, as per the company's filing on the Bombay Stock Exchange (BSE).

Mahindra and Mahindra posted positive results in the April to June quarter. According to the company's press statement after the first quarter results, the company focused on margin expansion in its Auto and Farm segments as it aims to “deliver scale” in the financial year 2024-25. 

India's automobile industry was expected to grow, boosted by the rising demand and strong sales figures, which were reflected in the company results for the first quarter of the financial year 2024-25.