The reports indicate that the government might slash the duty from the current 110% to 15% as part of a new EV policy. This speculation has intensified with growing anticipation of US-based Tesla's entry into the Indian market.
The prospect of increased competition from imported EVs, particularly from a major player like Tesla, appears to have rattled investors, leading to a sell-off in auto stocks.
The Nifty Auto index is currently down 2.50% at 21,523.95. Mahindra & Mahindra (M&M) (down 5.99%), TVS Motor Company (down 3.97%), Tata Motors (down 2.30%), Ashok Leyland (down 1.76%), Hero Motor Company (down 1.47%), Bajaj Auto (down 1.28%) and Maruti Suzuki India (down 0.71%) slumped.