Shares of Maruti Suzuki and Mahindra & Mahindra (M&M) were trading in red in the morning trade on Wednesday after UK-based vehicle testing agency Global New Car Assessment Programme (NCAP) on Tuesday awarded zero star safety ratings to Maruti’s Celerio and Eeco models, as well as Mahindra’s utility vehicle Scorpio. Maruti Suzuki and M&M shares plunged as much as 3.57 per cent 2.17 per cent intraday.
At 11.33 am, shares of Maruti Suzuki were trading 2.61 per cent down at Rs 3,846. The scrip opened at Rs 3910 and has touched a high and low of Rs 3929.45 and Rs 3808, respectively, in trade. Maruti Suzuki shares ended 0.81 per cent down at Rs 3917 and Mahindra & Mahindra shares ended 1.59 per cent down at Rs 1320.10.
On the other hand, M&M shares were trading 1.09 per cent down at Rs 1,326.80. The scrip opened at Rs 1341.95 and has touched a high and low of Rs 1342 and Rs 1312.25, respectively, in trade. The BSE Sensex was down 224.43 points, or 0.87 per cent, at 25,549.18.
M&M in a statement said the latest test was conducted on a non-airbags variant of the Scorpio. Typically, non-airbag variants do not perform well on safety standards. According to the company, most variants of the Scorpio are equipped with airbags and a safety package. Approximately 75 per cent of Scorpio customers choose the airbags variants of the vehicle.
On the other hand, Maruti said “All our products are safe. They meet the safety standards of India and in most cases, exceed them.” It also added that that tests by NCAP are conducted at speeds that are higher than those prescribed by the regulatory authorities not only in India but in Europe and USA.
(With agency inputs)