Auto Industry Awaits US Trade Deal: Prospects for Growth

Indian auto component manufacturers are optimistic about the potential sealing of a trade agreement with the United States, a key market for their products, according to industry insiders.

Amidst the interim trade negotiations between India and the US, the Indian government has maintained regular communication with the auto components sector. This optimism comes in the wake of the US decision to suspend reciprocal tariffs until August 1, extending the previous July 9 deadline.

The Automotive Component Manufacturers Association of India's Director General, Vinnie Mehta, expressed hope that India, not listed among the 14 countries receiving tariff letters from the Trump administration, may secure a deal, albeit potentially a phased one. Exports to North America, accounting for 32% of the sector's trade, rose by 8% to USD 22.9 billion last year.

(With inputs from agencies.)