Shares of auto companies traded mixed after Finance Minister Nirmala Sithraman proposed to enhance the electric vehicle (EV) ecosystem in India. FM, however, did not announce any major direct announcements for the auto sector involved with personal mobility.
Reacting to the news, shares of Tata Motors dropped over 2% to ₹507, followed by Ashok Leyland (₹130, -1.96%), Tube Investments of India Ltd. (₹1,690, -0.36%), Maruti Suzuki India Ltd. (₹8,572, -0.26%), and MRF (Rs 7,2058, -0.17%).
On the flip side, shares of TVS Motors, Hero MotoCorp, Eicher Motors, M&M, and Bajaj Auto traded higher, rising up to 1.9%.
Meanwhile, the BSE auto index was trading at 26,353, down by 55.32 points, or 0.21%, at the time of reporting. In contrast, the BSE Sensex was trading at 58,838, up 824 points, or 1.4%.
The movement in auto stocks was also attributed to monthly sales numbers as most of the automobile companies released their sales figures for January 2022.
Finance Minister Nirmala Sitharaman during her Budget speech announced a slew of measures for the automotive sector including a new battery swapping policy and a focus on electric vehicles for public transport.
FM said that electric vehicles battery-swapping policy be brought out with interoperability standards, a move that is likely to have a positive impact on EV manufacturers. The decision will help auto companies such as Tata Motors, M&M, Hero MotoCorp, which is already focusing on the EV sector, as well as new private players, who are foraying in this space.