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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BorgWarner has secured a new contract to supply its torque-on-demand transfer case with mechanical lock (Mlock TOD) for a full-size SUV developed by a Chinese automaker. Production is scheduled to commence in the final quarter of 2026.

The growing full-size SUV segment increasingly demands vehicles adept at varied terrains, yet traditional part-time systems often require manual mode selection, hindering adaptability. The Mlock TOD addresses this by offering intelligent torque distribution and enhanced convenience, effectively bridging on-road and off-road requirements.

Built upon a proven design, the Mlock TOD integrates torque-on-demand and mechanical lock functions to boost performance and offer flexible solutions across platforms. Leveraging its deep expertise, local production and market insight, BorgWarner remains committed to delivering reliable, high-efficiency drivetrain systems.

Henk Vanthournout, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems, said, “We have built a 20-year relationship with this customer and we’re proud to continue supplying our AWD technology for their newest SUV. The Mlock TOD featured in this programme combines torque-on-demand four-wheel drive with mechanical lock modes, helping address a wide range of driving conditions while enhancing off-road capability, handling and safety. As a leader in four-wheel drive technology, BorgWarner will continue to leverage its proven product portfolio and technical expertise to deliver greater value to customers.”

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BorgWarner has secured a new dual-clutch transmission (DCT) programme with a Chinese motorcycle manufacturer, with production scheduled to begin in the third quarter of 2027. The integrated systems solution encompasses dual clutches, hydraulic control modules and clutch control software, designed for two-wheeled motorcycles and four-wheeled vehicles featuring engine displacements above 500 cc.

As the motorcycle industry increasingly embraces automatic shifting, dual-clutch technology is drawing growing market interest over automated manual transmission (AMT) and continuously variable transmission (CVT) alternatives. Dual-clutch systems offer superior shift smoothness and higher power transmission efficiency, making them particularly well-suited for larger-displacement performance motorcycles where responsive and seamless gear changes are essential.

With nearly 10 million passenger car dual-clutch units delivered globally, BorgWarner brings proven engineering expertise and mature manufacturing capabilities to the two-wheeler segment. This programme reflects the company's evolution from a component supplier to a system-level partner, combining hardware and software to support the customer's domestic growth in China while facilitating expansion into Europe, North America and other international markets.

Henk Vanthournout, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems, said, “Passenger car transmission technology provides a strong reference point for the evolution of motorcycle automatic transmissions, and we believe automatic transmission technology will continue to gain momentum in the motorcycle market. With our proven DCT expertise and systems integration capabilities, BorgWarner is well positioned to support our Chinese motorcycle customer in bringing its DCT solution to production and advancing automatic transmission technology for motorcycle applications.”

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Tier 1 component supplier Sona BLW Precision Forgings (Sona Comstar) has announced its financial results for Q1 FY2027, reporting revenue of INR 13.10 billion, representing a 54 percent YoY growth. EBITDA reached INR 3.03 billion with a margin of 23.1 percent, while profit after tax stood at INR 1.81 billion.

Interestingly, battery electric vehicle revenue reached an all-time high of 44 percent of total revenue, growing by 107 percent YoY.

During the quarter, the company unveiled its Sona Comstar 2.0 strategy and announced its entry into the robotics and physical AI sector, alongside expansion into high-voltage electric and hybrid powertrain systems through a partnership with DENSO Corporation.

Vivek Vikram Singh, MD & Group CEO, commented: “Q1 FY27 marks the unveiling of Sona Comstar 2.0 – our ambition to grow tenfold again over the next decade. As part of this strategy, we announced our entry into Robotics and Physical AI. Our partnership with DENSO also takes us into high-voltage electric and hybrid powertrain systems, completing an important missing piece in our electrification portfolio. The quarter was equally strong financially. We delivered our highest-ever quarterly revenue, BEV revenue and BEV revenue share. Revenue grew by 54 percent YoY, while EBITDA and PAT increased by 49 percent and 45 percent, respectively. BEV revenue more than doubled, and its share of automotive revenue reached an all-time high of 44 percent, despite continued weakness in the US EV market. This demonstrates the increasing diversification of our EV business across customers, products and geographies. We also secured new business across EV, hybrid and ICE powertrains, spanning India, Europe and North America and nearly every product category in which we operate.”

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Schaeffler India has reported its financial results for Q2 and H1 ended CY2026. Revenue from operations for the quarter was INR 26.81 billion, marking a 17.5 percent increase compared to the corresponding period of 2025, while net profit reached INR 3.36 billion.

For H1 CY2026, revenue from operations was INR 51.88 billion, up 18.1 percent YoY, with a net profit of INR 6.56 billion led by growth in the Automotive Technologies, Vehicle Lifetime Solutions and Intercompany Exports segments.

Harsha Kadam, Managing Director and Chief Executive Officer, Schaeffler India, said, “Schaeffler India registered a strong growth of 18.1 percent for the first half of the year. Our Automotive Technologies, Vehicle Lifetime Solutions and Intercompany Exports business continued the double-digit growth trajectory. Even for the quarter, despite a challenging market we recorded a 7 percent QoQ growth. Quality of earnings marginally impacted given cost pressures due to geopolitical developments. Overall, I am happy to share that we delivered on our financial performance consistently, amid volatility in a very dynamic macro-economic landscape. We remain committed on maintaining the momentum for the remainder of the year.”

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