Hyundai and Mahindra & Mahindra, two of the biggest automobile companies in India have been slapped with a penalty by the Union Government over emission levels.

Centre Imposes Rs 7,300 Crore Penalty

Along with Hyundai Motor India and Mahindra & Mahindra, 6 other carmakers in India were fined after the companies were found to have higher than mandated fleet emission levels in FY23.

The penalty, as per a report from the Indian Express, amounts to a staggering Rs 7,300 crore.

This development has affected the performance of the carmakers (Hyundai and M&M) listed on the Indian indices.

The other big names in the South Korean auto-giant Kia, Nissan, Japanese maker Honda, Czech carmaker Skoda Renault from France and Force Motors.

In the fight against climate change, many nations, developed and developing alike, have issued promises and goals to attain sustainable means and levels of emissions. The focus is not just on governments but also on corporations.

The focus is on Hyundai and M&M, as they were the second and third-largest car sellers in recent months. Hyundai has been handed a penalty of Rs 2,800 crore, meanwhile, M&M has been hammered with a penalty of Rs 1,800 crore.

In addition, these are the only two listed (in India) companies on the list.

Hyundai Motor India Ltd

The newly listed Hyundai Motor India saw a major decline in the early hours of the day's trade on Thursday. The share of the company dipped as low as 1 per cent, before recovering slightly.

After opening at Rs 1,890.00, the company shares declined by 0.96 per cent or Rs 18.35. This took the overall to Rs 1,889.10.

Mahindra And Mahindra Ltd

The story was a little bit more severe for Anand Mahindra's Mahindra and Mahindra, as the company shares declined by over 2 per cent in the early hours of the day trade.

The drop in value steepened further, at the time of writing, the share of M&M dropped by a major 2.53 per cent or Rs 76.05. This took the overall value to Rs 2,928.75 per share.