Auto stocks skid on fears of steep hike in petrol price

On fear of more than 20% hike in Petrol prices [Rs 10 to Rs 16 / litre hike expected], Auto stocks were unloaded on the bourses mercilessly. Bajaj Auto is down 11%, Maruti Suzuki down 4%, Hero Honda down 2%, Tata Motors down 2.5% and TVS Motors down 3%.

Auto firms are already facing a facing a challenging time. On the one hand, sales has slowed down due to higher interest rates and on the other hand a surge in raw material prices has squeezed margins.