Impact of US Tariff Hike on Indian Auto Components and Tyre Industry
The recently imposed 25% US tariff on Indian exports places the Indian auto component and tyre industries at a disadvantage compared to peers in Asia. With significant export exposure to the US, Indian manufacturers may face reduced competitiveness, prompting a need for strategic diversification and cost efficiency improvements.
- Country:
- India
The US administration's decision to levy a 25% tariff on Indian exports has stirred concerns within India's automotive and tyre sectors, Icra reported on Saturday.
Starting August 7, the tariff, applicable to all goods entering the US from India, puts these industries at a comparative disadvantage, especially against Asian counterparts like Japan, Vietnam, and Indonesia, which enjoy lower duties.
The move could impact the competitiveness of Indian auto component and tyre manufacturers in the US market, particularly affecting the off-highway and replacement segments. To mitigate the effects, Indian exporters are likely to diversify their markets and enhance production efficiency.
(With inputs from agencies.)
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