Trump tariff: Indian auto component industry may face short-term disruptions

Among countries, the US was at the top, accounting for 27% of the entire exports from the Indian auto component manufacturers. However, imports from the US were at 7% only.

Referring to the tariffs as a direct challenge to auto component exports, Primus Partners Vice President Nikhil Dhaka said: "For an industry that has been steadily building a global reputation for quality and reliability, the tariff introduces significant cost pressures and creates uncertainty in one of its key destination markets."

While the Indian passenger vehicle (PV) and two-wheeler manufacturers have relatively limited exposure to the US compared to the markets like Europe or Japan, the auto component manufacturers play a critical role in the US supply chain, particularly in drivetrain, engine, chassis and electric vehicle (EV)-related systems.

"Some of the Indian companies likely to be directly affected include Motherson Group (Samvardhana Motherson International), which has significant US operations and customer dependencies, and Sona BLW Precision Forgings (Sona Comstar), known for supplying differential assemblies and electric motor components to global EV manufacturers, including in the US," Dhaka noted.

Grant Thornton Bharat Partner Saket Mehra said that the tariff imposition is expected to "impact pricing strategies and supply chain dynamics".

"Many firms are already exploring alternative markets and considering investments in tariff-neutral zones like Mexico to sustain their global presence," Mehra said, adding that companies, particularly those expanding in the US, may need to reassess their export models.