The United States President, Donald Trump, announced a new set of tariffs as part of its ‘Liberation Day’ initiative on 2 April 2025. This new rate of tariffs is part of Trump’s administration to boost national production and what he claimed is to resolve ‘trade imbalances.’

A statement issued by ACMA India mentioned that as per an order by Trump on 26 March 2025, Section 232 charges 25 percent tariffs, but there is no mention of ‘Autos & auto parts and steel & aluminium articles.’

The industry body stated that the detailed list of auto components that will be subject to 25 percent import tariff in the United States was awaited.

Rajesh Menon, Director General, SIAM, said, “Commenting on the recent announcement by US Govt on Reciprocal Tariffs, it is to be noted that autos are not covered in this order since they are already subject to Section 232 tariffs at 25 percent, announced earlier in President Trump’s order on March 26, 2025.  We don't expect any significant impact on the Indian automobile industry since there are limited exports to US, but we will continue to monitor the situation."

Shradha Suri Marwah, President, ACMA and CMD, Subros, said, “ACMA remains hopeful that the ongoing bilateral negotiations between the Indian and U.S. governments will lead to a balanced resolution that benefits both economies. We believe that the strong trade relationship between India and the United States, especially in the auto components sector, will encourage continued dialogue to mitigate the impacts of these measures. ACMA is committed to engaging with all stakeholders to ensure the long-term interests of the Indian auto component industry.”

A statement from the White House mentioned that President Trump was working to level the playing field for American businesses and workers by confronting the unfair tariff disparities and non-tariff barriers imposed by other countries.

‘For generations, countries have taken advantage of the United States, tariffing us at higher rates. For example: The United States imposes a 2.5 percent tariff on passenger vehicle imports (with internal combustion engines), while the European Union (10 percent) and India (70 percent) impose much higher duties on the same product.’

For FY2024, India exported USD 6.79 billion worth of auto components, which translates to 27 percent of the total exports from India. On the other hand, India’s automotive component imports from the United States was valued at USD 1.63 billion or 7 percent of the total imports.

Saurabh Agarwal, Partner & Automotive Tax Leader at EY India, stated, “With US automotive tariffs rising, India's electric vehicle sector has a prime opportunity to capture a larger share of the US market, especially in the budget car segment. China's 2023 auto and component exports to the US stood at USD 17.99 billion, while India's were only USD 2.1 billion in 2024, highlighting the potential for growth. To accelerate this, the government should enhance the PLI scheme by including more auto components, opening it to new players, and extending it by two years."

Arun Agarwal, VP – Fundamental Research – Automobiles, Kotak Securities, said, “US has imposed 25 percent tariffs on imported cars, light trucks and select auto parts sourced from outside of North America. Further, almost 150 auto parts will face tariffs at similar rate. This move could result into increase in car prices in the US and cost pressure for component suppliers. In the event of car prices going up, the US car market may witness a steep volume decline and that can impact revenue for component players supplying parts to the US car/light truck industry. Further, margins of suppliers may come under pressure as they may need to partly absorb cost pressures. We believe there will be some impact, which the suppliers will have to bear, leading to negative implications on margins. Having said that, it needs to be seen on how higher tariffs are absorbed across the supply chain that includes customers, OEMs and suppliers. The extent of impact for Indian players will also depend on the US-India bilateral agreement over the next few months.”

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Tier 1 supplier Schaeffler India is showcasing a range of motion technologies at the Symposium on International Automotive Technology (SIAT) 2026. The company's exhibit at Hall Zone D includes electrification solutions such as drives, motors and modules, alongside powertrain systems for internal combustion engines and hybrid vehicles.

The portfolio on display features chassis components, sensors, fuel delivery modules, and bearings designed to reduce friction in vehicles. The company is highlighting its local engineering capabilities and its work with manufacturers to develop mobility solutions within India.

Company executives are participating in the symposium's technical programme. Madhurisha Vippatoori, Chief Technical Officer, is chairing the Testing and Evaluation track. Deepak Kasturi, Head of Innovation India, is delivering a keynote address regarding Euro 7 standards and real-time emissions monitoring.

The company stated that its presence at the event reflects its focus on engineering innovation, energy efficiency and collaborative development with automotive customers and academia.

Harsha Kadam, CEO & MD, Schaeffler India, said, “As a leading mobility solutions provider in India, we at Schaeffler are proud to be associated with all the leading automotive customers in shaping the future of mobility. We are equally committed to supporting our customers across various types of powertrains that will support cleaner, electrified, and intelligent mobility. Together, we are shaping a more secure, sustainable, and future-ready India.”

Viswanathan Sambasivam, Division Head - Powertrain & Chassis India, said, “SIAT provides an ideal platform to demonstrate how we are shaping mobility for India. Our focus is on co-engineering with OEMs, accelerating technology transfer, and strengthening local value creation. The solutions we are bringing this year represent the next step in advancing clean, safe, and smarter mobility.”

Omkar Kulkarni, Division Head - E-Mobility India, said, “India is one of our most important engineering hubs. Our teams here are working closely with customers to design for India, build in India, and innovate for India. The technologies displayed at SIAT underline our ability to combine global expertise with local development capabilities.”

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The Indian automotive component industry was valued at USD 80.2 billion in FY2025, with the aftermarket segment contributing USD 11.8 billion. Data from the Automotive Component Manufacturers Association of India (ACMA) indicates the sector grew by 6.8 percent to reach USD 41.2 billion in the first half of FY2026. Industry projections suggest the component market will reach between USD 111 billion and USD 200 billion by 2030.

Against this growth, the ACMA Automechanika New Delhi 2026 trade fair will take place from 5 to 7 February 2026 at Yashobhoomi, New Delhi. Organised by Messe Frankfurt Trade Fairs India and ACMA, the event will host more than 870 exhibitors. The fair serves as a platform for manufacturers, distributors and service providers to showcase innovations in spare parts, electronics, diagnostics and workshop equipment.

The exhibition will feature participation from 20 countries, including Germany, Japan, Korea and the USA. Dedicated pavilions will highlight technologies from nations such as China, Italy and Taiwan. The event focuses on electrification, alternative fuels and digital authentication. Exhibitors will display ethanol-ready components, hydrogen systems and electric vehicle charging solutions.

Raj Manek, Executive Director and Board Member of Messe Frankfurt Asia Holdings, said, “As India prioritises quality-led development across sectors, ACMA Automechanika New Delhi 2026 will showcase how the auto components and aftermarket industry is advancing in sync with global trends. The show will unite visitors and exhibitors in a massive international gathering, converging cutting-edge innovations, sustainable component solutions and clean-fuel ecosystems. Global participants are increasingly drawn to India's pivotal role in this transition, with organisations showing strong enthusiasm for tech-driven solutions to combat climate change and build a thriving and a cleaner future”.

Vinnie Mehta, Director General of ACMA, added, "India’s automotive aftermarket is moving towards a more structured, quality-driven and globally aligned future. The auto component industry grew by 6.8 percent to USD 41.2 billion in the first half of FY26, supported by stable domestic demand, a resilient aftermarket and sustained investments in capacity expansion, localisation and technology upgradation. ACMA Automechanika New Delhi provides an important platform for industry stakeholders to engage with emerging technologies, regulatory developments and global market opportunities”.

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Sona BLW Precision Forgings (Sona Comstar) has announced its financial results for Q3 FY2026, reported revenue of INR 12.09 billion, a 39 percent increase YoY.

The company’s EBITDA grew by 25 percent to INR 3.2 billion with a margin of 25.2 percent, while net profit rose by 20 percent to INR 1.8 billion. Revenue from Battery Electric Vehicles (BEV) represented 38 percent of total turnover.

In the first 9-months of FY2026, the company secured six new programmes, bringing the total to 65 across 33 different customers. Additionally, Sona Comstar was awarded a programme from a new customer to supply hydraulic motor controller.

Vivek Vikram Singh, MD & Group CEO, Sona Comstar, said, “We achieved our highest-ever quarterly revenue, EBITDA, and adjusted net profit in Q3 FY2026. Our revenue grew strongly by 39 percent YoY, primarily driven by the expansion of our electric vehicle traction motor and railway business in India. BEV revenue share improved meaningfully to 38 percent in Q3 from 32 percent in Q2FY2026 and represents our second-best quarter till date in terms of absolute BEV revenue and share. We have commercialised a new product in this quarter, the hydraulic motor controller, leveraging our strengths in motors and controllers to develop the solution for a new application outside the current product portfolio. We continue to add new EV customers and win new EV programs from our existing EV customers. Moreover, we commenced sample production of in-cabin radar sensors in our new SMT line at Chennai facility in this quarter, making us one of the few automotive radar manufacturers in India with local SMT manufacturing capability.”

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Valeo has received a contract from a global automaker to produce interior lighting systems using In-Mold Structural Electronics (IMSE) technology. The programme utilises solutions from TactoTek to integrate lighting and electronics into a single structure. This award brings Valeo’s total order intake for interior lighting to nearly EUR 1 billion since 2024, a figure that includes light lines, pixelated solutions and smart surfaces.

The project focuses on interior structures where electronics are embedded directly into finished parts. This method produces a flush surface and creates a structure that is thinner and lighter than traditional assemblies. The design reduces material usage and energy consumption while increasing the durability of the components. To support the contract, Valeo has commissioned an automated production line designed for the high-volume manufacturing of these integrated systems.

The collaboration with TactoTek provides the foundation for scaling smart surfaces into large-scale production. By replacing multi-part assemblies with unified structures, Valeo aims to meet industry demand for interiors that combine design and functionality. The new production line is intended to optimise processes for the industrialisation of IMSE-based solutions, which the companies claim offers cost competitiveness and flexibility for future design changes.

Maurizio Martinelli, CEO - Light Division, Valeo, said, “This award sets a new benchmark for next generation interior solutions. Valeo’s lighting expertise and industrial capabilities, combined with IMSE technology, are enabling us to bring highly advanced, smart interior systems into large-scale production. It also reflects our commitment to shaping the future of mobility in a way that brings lasting value to customers globally.”

Jussi Harvela, CEO, TactoTek, added, “Our cooperation with Valeo and the commissioning of a dedicated new production line mark an important milestone in the large-scale industrial adoption of IMSE technology, whose cost competitiveness and ability to support future design evolution were decisive factors in securing the award. This collaboration demonstrates how our vision for smart surfaces transforms into a scalable solution that serves leading automotive manufacturers.”

The integration of electronics into structural parts is a direction for the automotive sector as manufacturers seek to reduce vehicle weight and simplify interior architectures.

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