Our Bureau
New Delhi
As India braces itself for the wrath of 50% tariffs imposed by the Government of the United States, the country’s auto ancillary market unlike the garment exporters doesn’t have to deal with 50% import duties and has some breathing space. Still, Manesar, one of the three major hubs for the automobile market of the country alongside Chennai and Pune, is bracing to face the brunt of these import duties.
Vinnie Mehta, director-general of Automotive Component Manufacturers Association of India (ACMA), revealed that the automotive component industry of India is worth around $80 billion. Out of those $80 billion, $23 billion is exports from which the US share is around 8-9%. He revealed that last year in 2024, auto components export to the US stood at $6.6 billion out of which $3.5 billion worth of export will continue with 25% import duties but the remaining market will face 50% tariffs.
Jagdeep Rangar, the Managing Director of Stock Rubber Product, a company that manufactures engine mounts, rubber bushes, high voltage polymer insulators, etc, talked about how auto components that are exported to the US are categorised into two categories. On one hand are the parts that are used in light trucks and passenger vehicles that will have 27.5% tariffs while the other are the parts that are used in marine, agriculture (like tractors), heavy trucks, heavy machines and cranes that will be facing the biggest hit of 50% from the imposed import duties.
Rangar stated that the sector is looking towards the central government to get some aid so that they can absorb the impact that the tariffs will cause. He also highlighted that finding a new market for selling these components is not an easy task and developing new components would take a long time, requiring at least 2 years.
