Latest News | Auto-related Stocks Settles on Mixed Note Post Union Budget

New Delhi, Feb 1 (PTI) Shares of automobile-related companies ended on a mixed note on Wednesday after Finance Minister Nirmala Sitharaman announced a hike in customs duty on fully imported vehicles, including electric vehicles.

The stock of Samvardhana Motherson International slipped 2.05 per cent to close at Rs 74 apiece, Mahindra & Mahindra dived 1.91 per cent to settle at Rs 1,352.20 per share, TVS Motor Company fell 1.89 per cent to touch Rs 1,017.60 each, Ashok Leyland went lower by 1.47 per cent on the BSE.

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Besides, shares of Maruti Suzuki India fell 1.46 per cent, Hero MotoCorp (1.34 per cent), Tata Motors (1.22 per cent) and Bajaj Auto (0.28 per cent).

However, shares of UNO Minda jumped 2.03 per cent, both MRF and Eicher Motors went higher by 1.20 per cent and Bosch Industries rose 0.56 per cent on the exchange.

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The auto index ended at 266.98 points or 0.88 per cent lower and settled at 30,185.07 on the BSE.

In the Budget for FY 2023-24 on Wednesday, Sitharaman announced a hike in customs duty on fully imported cars, including electric vehicles.

Customs duty on vehicles in completely built units (CBUs), costing less than USD 40,000, has been raised from 60 per cent to 70 per cent.

Similarly, customs duty on electrically operated vehicles having value of more than USD 40,000, has also been raised to 70 per cent from 60 per cent.

The budget also outlined that customs duty on vehicles, including electric vehicles, in semi-Knocked down (SKD) form will rise to 35 per cent from 30 per cent earlier.

Already, cars imported as CBUs with a value of more than USD 40,000 attract 100 per cent customs duty.

Meanwhile, equity benchmarks Sensex and Nifty ended on a mixed note. The 30-share BSE benchmark Sensex climbed 158.18 points or 0.27 per cent to settle at 59,708.08. In contrast, broader NSE Nifty declined 45.85 points or 0.26 per cent to end at 17,616.30.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)