US President Donald Trump’s decision to impose a 25% tariff on auto imports sent shockwaves through Indian auto makers and auto parts exporters. Trump claimed it would boost domestic manufacturing and generate $100 billion annually. “This will continue to spur growth. We will effectively be charging a 25 per cent tariff,” Donald Trump told reporters. The new tariff will take effect on April 3. As it comes into force, automakers anticipate rising costs and declining sales.
Which All Indian Companies Will Be Impacted?
Trump’s decision will impact Tata Motors, Eicher Motors, Sona BLW Precision Forgings, and Samvardhana Motherson. According to MoneyControl, these firms export auto components to Europe, Japan, South Korea, and China, where they become essential parts of vehicles ultimately making their way to the United States.
Companies Impacted
Tata Motors – Tata Motors does not directly export vehicles to the U.S., its subsidiary Jaguar Land Rover (JLR) has a strong presence in the American market. Tata Motors primarily manufactures passenger cars (Tata Nexon, Harrier, Safari), commercial vehicles (buses, trucks), and electric vehicles (Tata Tiago EV, Tigor EV).
Eicher Motors – Parent company of Royal Enfield (motorcycles like Classic 350, Bullet 350, Meteor 350) and manufacturer of commercial vehicles in partnership with Volvo (Eicher trucks and buses). US is an important market for its 650cc models.
Sona BLW Precision Forgings – Automotive components, including drivetrain systems, differential gears, and precision-forged components for electric and conventional vehicles. With a strong global presence, the company earns nearly 66% of its revenue from the U.S. and European markets, highlighting its deep ties to these key automotive hubs.
Samvardhana Motherson – Auto parts manufacturer specializing in wiring harnesses, rearview mirrors, polymer parts, and other vehicle components for global automakers. Samvardhana is India’s leading auto component manufacturers, with a footprint in both Europe and the US. Major suppliers of American automakers including Tesla and Ford.
FY24 annual report of Jaguar Land Rover (JLR) states that 22% of its total sales came from the U.S. market, making it one of JLR’s top-selling regions. In FY24, JLR sold approximately 400,000 vehicles globally.
Other major players in the auto components industry with a strong global footprint include Bharat Forge, Sansera Engineering Ltd, Suprajit Engineering, and Balkrishna Industries, all of which rely heavily on exports for a significant share of their business.
US Imports
In fact, the United States imported nearly 8 million cars and light trucks last year, valued at $244 billion, with Mexico, Japan, and South Korea as the top sources. Auto parts imports totaled over $197 billion, primarily from Mexico, Canada, and China, according to the commerce department.
