Auto stocks rise as Nitin Gadkari makes six airbags mandatory; Tata Motors, Rane Madras surge

Auto stocks were in focus on Monday after Transport Minister Nitin Gadkari Friday made it compulsory for private vehicles carrying up to eight passengers to have six airbags.

Gadkari approved a draft gazette notification making 6 airbags compulsory for private vehicles carrying up to 8 passengers to "ensure the safety of passengers across all segments, irrespective of the cost or variant of the vehicle," he said. Meaning, the said cars must have two side torso airbags and two side curtain airbags, covering all outboard passengers. The driver seat and co-passenger seat airbag was made mandatory in July 2019 and January 2022, respectively.

Nifty Auto surged over 2 percent early on Monday led by four-wheeler stocks. Tata Motors surged 3 percent to Rs 524 while Mahindra & Mahindra surged 1.5 percent. Maruti Suzuki also rose over 3.5 percent to Rs 8,368, an intraday high.