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The Nifty Auto Index faced sales pressure on 18 February, sliding more than 1%, was weighed by major shares like Ashok Leyland, Mahindra and Mahindra, and Tata Motors
Alon Musk starts renting India in Nifty Auto as Tesla of Elon Musk
The Nifty Auto Index faced sales pressure on February 18, slipping over 1%, weighed by major shares such as Ashok Leyland, Mahindra and Mahindra and Tata Motors. This decline has happened with reports that suggest that Tesla is increasing its efforts to hiring in India, a step that may indicate the company’s interest in entering the country’s motor vehicle market.
Tesla’s hiring push in India is seen as a potential precursor for a large expansion strategy, which is a potentially acute competition in India’s premium electric vehicle (EV) region. However, analysts are cautious about the immediate effect that Tesla may have the presence on the market.
Ashok Leind emerged as the worst artist in the index, dropping 2.59% intraday, while Tata Motors saw a 1.76% dip, which touched an intrade of Rs 674.50 less. Mahindra and Mahindra fell by 2.19%, closed at Rs 2,770 per share on NSE, raising its defeat streak in the seventh consecutive session, during which it lost more than 13%. Bajaj Auto also declined by 1.4%, which reached an intraad of Rs 8,417.55.
After Tesla’s recent visit to India, after a meeting between Tesla CEO Elon Musk and Indian Prime Minister Narendra Modi, Tesla’s India Hiring Initiative includes 13 roles.
Parthiv Shah, director of Trecom Stock Brokers, said that when India’s EV sales are growing rapidly, the country’s charging infrastructure remains underdeveloped, which limits the possibility of immediate dissolution from new market entrances. He also stated that current players like BYD and Hyundai are already well installed in EV space, showing domestic vehicle manufacturers such as Tata Motors entry into a strong market. Shah suggested that Tesla’s focus is more likely to be on the luxury EV segment, while the biggest demand in India is currently at Rs 10-25 lakhs, where Tesla is not yet offered.
Sanjeev Hota, the head of research at Mirae Asset Charekhan, echoed the feeling, stating that Tesla’s entry is unlikely to have significant impact on India’s motor vehicle market in the near period.
In an attempt to make the Indian market more attractive to foreign players, the government has reduced customs duties on high-end cars from 110% to 70% $ 40,000. This step may encourage Tesla to reconsider his India plans, which was in grip due to high import duties.
India’s EV market is in its early stages compared to China compared to China, compared to about 100,000 electric cars in 2024, from China’s 11 million. A potential Tesla Forest in India may offer development opportunities, especially at a time when Tesla has reported its first annual decline in EV sales in a decade.
Mahindra and Mahindra’s newly launched electric SUV, XUV E9 and B6, have already seen a strong demand, with a total booking of Rs 8,472 crore (ex-showroom).
The Nifty Auto Index has improved 21% in September 2024 from high levels of all time. However, the market participants hope that the emotion will improve, the strong industry has been introduced in the price increase, interest rate cuts, and tax relief. Union Budget. The EV segment, in particular, expected to look at increased competition and development as new models meet the growing demand of electric vehicles.
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