Auto components makers more likely to be hit by tariff than vehicle makers

New Delhi: Indian auto component makers are more likely to be impacted than their vehicle manufacturing counterparts by US President Donald Trump’s tariff war, industry observers said on Thursday.

Trump on Wednesday announced imposition of 25 per cent tariffs on auto imports from April with another 25 per cent tariffs expected to be applied on imports of major automotive parts — engines and engine parts, transmissions and powertrain parts, and electrical components by May.

“It is the Indian auto components industry that is more likely to face the heat due to the US tariff as exports from here to the US are significant.

“Indian vehicle makers are less likely to be impacted as there are no direct exports of fully built cars from India to the US,” an industry executive said on the condition of anonymity.

According to industry estimates, India’s auto component exports to the US was $6.79 billion in FY24, while the country’s imports from the US stood at $1.4 billion at 15 per cent duty.

Prior to Wednesday’s announcement by Trump, the US charged almost ‘nil’ duty on imported components.