Shares of leading SUV maker Mahindra and Mahindra fell as much as 6 percent on February 21, setting it up for the biggest weekly fall in five years.

There has been a slew of news flow concerning investors, including increasing competition in the EV space, possible over-valuation of the stock price, and company's recent plans of investing in the rights issue of two of its listed subsidiaries.

M&M's recently-launched electric SUVs received an overwhelming response of over 30,000 bookings on the very first day that it opened for orders. The total value of these bookings amounts to Rs 8,472 crore (based on ex-showroom prices).

The Nifty Auto index, meanwhile, has been under selling pressure on reports that the Centre is considering reducing import duty on electric vehicles, in an effort to attract wider global participation in the space. The automobile import duty might fall from 110 percent to 15 percent under the new EV policy, said reports, as Tesla gears up for an India forway in a couple of months.

Apparently, Tesla Inc's efforts have gained momentum to enter the Indian market care segment through direct imports instead of committing to local manufacturing in near-term.

Shares of M&M have been under pressure, down 18 percent in two weeks from its recent peak of Rs 3,270, seen on February 10.