US Tariffs: A New Chapter for the Indian Auto Industry

The Indian automobile industry remains largely unaffected by recent US tariff hikes, as major exports are not entirely directed towards the US. With negotiations ongoing, the focus is on the potential for Indian automakers to fill gaps in the US market, especially in the electric vehicle segment.

The Indian automobile industry is bracing itself as the US imposes a fresh round of tariffs, although key sectors like automobiles remain largely untouched. Industry body SIAM expressed confidence that the impact would be minimal, citing limited exports to the US.

While Section 232 tariffs remain in effect, recent US tariff adjustments have exempted countries like Canada and Mexico, providing relief to Indian manufacturers with facilities there. Automotive Component Manufacturers Association of India remains hopeful for a balanced resolution through heated bilateral negotiations.

Despite minimal impact on car exports, industry experts see potential opportunities for India to expand its electric vehicle footprint in the US market amid rising automotive tariffs, stating that focusing on the budget car segment could be key to gaining market share.

(With inputs from agencies.)