Auto stocks came under sharp selling pressure after a Reuters report said India is set to slash tariffs on European car imports as part of a trade deal with the European Union. Shares of Mahindra and Mahindra dropped as much as 5.1 percent to their lowest level since August 2025, leading losses on the Nifty Auto index, which was down 2.2 percent. According to the report, India plans to cut tariffs on European Union car imports to 40 percent from as high as 110 percent, as both sides move closer to a free-trade agreement that could be finalised as early as January 27. The government has agreed to immediately reduce duties on a limited number of cars priced above 15,000 euros, the report said, citing sources.