Mexico Tariffs, Profit Booking Sink M&M, Eicher, Bajaj Auto Shares

• Nifty Auto index dropped nearly 1% on December 15, with shares of M&M, Eicher Motors, and Bajaj Auto falling up to 2%.
• Mexico imposed a 50% tariff on Indian goods, effective January 1, 2026, significantly impacting auto and auto components exports.
• Profit-booking contributed to the share price fall, as the Nifty Auto index was near its 52-week high after recent gains.
• Citi forecasts macro tailwinds for Indian auto sales in 2026 but anticipates a potential dip in automakers' gross margins due to competition and rising costs.

Why It Matters: Mexico's 50% tariffs on Indian goods threaten auto exports, impacting stock prices.