India's Auto Component Industry Braces for US Tariff Impact

The Indian auto components industry is reevaluating its position amidst the recent imposition of US tariffs on Indian products, officials from ACMA stated on Friday. Despite some initial stalling among US customers, the sector remains resilient and is actively seeking alternative markets.

The impending India-EU Free Trade Agreement is now more critical than ever, given the current tariff tensions with the US. Last year, India exported USD 6.6 billion worth of auto components to the US, with key sectors now facing significant tariff hikes. Stakeholders emphasize the need for Europe to play a pivotal role in mitigating these impacts.

Industry leaders advocate for a balanced perspective on global tariffs, urging domestic companies to enhance cost competitiveness. With strategic market explorations and ongoing negotiations, the sector remains optimistic, seeing this as a transitionary phase towards a more robust global presence.

(With inputs from agencies.)