23 Jul , 2025 By : Debdeep Gupta
Shares of Indian auto companies rallied up to 3 percent on July 23, lifted by a surge in auto stocks in Asia after the United States and Japan reached a major trade agreement. The deal, which reduces tariffs on Japanese vehicles entering the US market, has reignited optimism around the possibility of similar trade arrangements with other nations—India included.
Despite earlier delays, expectations of a US–India trade deal remain alive, with both governments and investors hopeful of progress in the coming weeks.
Indian automakers mirrored the global momentum, with Bajaj Auto, Tata Motors, Maruti Suzuki, Mahindra & Mahindra, and Hyundai Motor India gaining up to 3 percent intraday. The rally was part of a broader trend that saw Japanese auto giants like Toyota, Honda, and Nissan surge on the Tokyo Stock Exchange, pushing the benchmark Nikkei index up by 2 percent.
While US President Donald Trump did not disclose full details in his Truth Social post, a Reuters report suggested that the deal includes a cut in tariffs on Japanese autos—from 25 percent to 15 percent. The move is expected to provide a major boost to Japan’s auto exports, which account for over a quarter of its shipments to the United States.
The deal with Japan, the world's fourth-largest economy, is considered the most consequential among several trade pacts the White House is trying to fast-track ahead of the August 1 deadline—when higher levies are scheduled to take effect.
At about 10:10 am, the Nifty Auto index was up 1 percent with Tata Motors, M&M, Maruti Suzuki, Bajaj Auto, TVS Motor, and Hero MotoCorp being the top performers. Nifty Auto index is up over 4 percent since the beginning of the year.
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