New Delhi: In the fiscal year 2024, India achieved auto component exports totaling $21.2 billion, playing a significant role in the global auto component market, which is valued at $1.2 trillion.
President Donald Trump has implemented a 25 percent tariff on foreign auto imports, a move anticipated to affect Indian firms such as Tata Motors, Eicher Motors, Sona BLW, and Samvardhana Motherson.
While Tata Motors does not directly export to the United States, its subsidiary, Jaguar Land Rover (JLR), has established a robust presence in the American market.
As per JLR’s annual report for FY24, the United States represented 22 percent of its total sales. In that fiscal year, JLR sold nearly 400,000 vehicles globally, with the US identified as one of its primary markets.
The vehicles sold by the company in the US are mainly produced in the UK and other international facilities, which will now be affected by the 25 percent tariff.
Additionally, Eicher Motors, known for its Royal Enfield motorcycles, may also experience repercussions, as the US is a key market for its 650cc models.
Samvardhana Motherson International Ltd, a prominent auto component manufacturer in India, has a significant presence in both Europe and the US.
The company supplies components to major American automotive manufacturers, including Tesla and Ford. However, due to its established manufacturing operations in the US and Europe, it is somewhat insulated from the effects of import tariffs, unlike companies that depend solely on exports.
Sona Comstar specializes in automotive systems and components, such as differential gears and starter motors. Approximately 66 percent of its revenue is generated from the US and European markets. To reduce risks, Sona BLW is diversifying its export markets by expanding into China, Japan, and South Korea, with the goal of having these Eastern markets account for over 50 percent of its revenue within five years.
Additional prominent manufacturers of key components with considerable export involvement are Bharat Forge, Sansera Engineering Ltd, Suprajit Engineering, and Balkrishna Industries.
During the financial year 2024, India’s exports of automotive components reached $21.2 billion, playing a role in the global automotive component market valued at $1.2 trillion.
Exports to the United States and Europe, the largest importers of auto parts globally, accounted for around 4.5 percent of the total worldwide trade.
