“It is the Indian automotive components industry that is more likely to face U.S. tariffs, because exports from here to the U.S. are very important.
“Indian vehicle manufacturers are unlikely to be affected,” an industry executive told PTI on anonymous.
According to industry estimates, India’s automotive components exports to the United States were $6.79 billion in fiscal 24, while the country’s imports from the United States amounted to $1.4 billion, accounting for 15%. The U.S. had almost “no zero” obligations to import components ahead of Trump’s announcement on Wednesday.
“As of now, engine components, power trains and gearboxes are our largest exports,” another industry official said.
Ravi G Bhatia, president and director of Jato Dynamics India, said India has not yet been picked out with Trump’s tariffs, which also applies to the country’s competitors.
“This step will certainly happen, but it’s not a ‘tsunami’. It’s not a big blow, and Indian suppliers will figure out how to retain their market share in the United States,” he said.
Batia expressed confidence that India’s low-cost manufacturing industry would become more favorable, as 25% of tariffs would only increase vehicle prices in the United States.
But Trump’s latest move could give some Indian automakers looking for global expansion, including new products including electric vehicles, a second idea about their plans, he said.
The Automobile Component Manufacturers Association of India (ACMA) and the Automobile Manufacturers Association of India (SIAM) did not comment on the development.
Another industry executive said some leading auto component manufacturers have opened factories in Mexico and Canada to take advantage of the NAFTA and supply parts to the U.S.
One of them is Motherson Group, one of the country’s top automotive components manufacturers. The group’s comments are not immediately available.
However, in a third-quarter revenue call, Samvardhana Motherson International Ltd director Laksh Vaaman Sehgal pointed out that Motherson has a global local strategy with its customers near its manufacturing plant.
“It is usually through all material flows, so they are customer nominated parts. Any changes in tariffs for these parts have a delivery effect.
“For the remaining procurement, we are actively working to localize it, so if anything, it will be very limited for mothers. In addition, since tariffs are an industry-wide issue, these issues will eventually be repositioned by customers,” he noted.
