After terming India’s import duty barriers high for some time, US President Donald Trump has expressed that 2 April 2025 will be remembered as the day the American industry was reborn as his government announced a broad new tariff policy that imposes at least a 10 percent duty on nearly all imports from certain countries. In the case of India, the policy speaks of 26 percent ‘discounted' reciprocal tariffs. The tariff on China, on the other hand, is 34 percent. 

Aimed at protecting American farmers and ranchers, according to Trump, the broad-based tariff policy is also being termed as ‘national emergency’ driven in view of the ongoing trade deficits, which hit a record USD 1.2 trillion in 2024.

The German auto industry has reacted to the US policy by stating that it 'will only create losers'. While the Asian stock markets have shrunk in response to the announcement, the Indian Ministry of Commerce is analysing the impact of the 26 percent ‘discounted’ tariff announcement. 
Mentioning in its statement that it understands the intent of the US administration to boost domestic manufacturing and address trade imbalances, the Indian auto components apex body ACMA (Automotive Component Manufacturers Association of India) has said that autos and auto parts as well as steel and aluminium articles are already subject to Section 232 tariffs at 25 percent announced earlier by the US President’s order on 26 March 2025. A detailed list of auto components that will be subject to 25 percent import tariff is awaited, it mentioned.

Shraddha Suri Marwah, President, ACMA and CMD, Subros Ltd, averred, “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.”

Saurabh Agarwal, Partner and Automotive Tax Leader, EY India, observed, "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.” He drew attention to the fact that China's 2023 auto and component exports to the US stood at US$17.99 billion whereas India's were only US$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,” he added. 

Mrunmayee Jogalekar, Auto and FMCG Research Analyst, Asit C Mehta Investment Interrmediates Ltd, expressed, “Certain sectors such as auto and auto ancillary, which are already subject to a separate 25 percent tariff announced in March are exempt to the levy of reciprocal tariffs. This means no additional tariffs will be imposed on this sector.”
Stating that other exempted segments include copper, pharmaceuticals, semiconductors, critical minerals and energy products, she informed,

“Since import duties apply to all trading partners, the extent of impact will vary across sectors and countries based on competitive advantages.” “For the Indian auto component industry, which derives around 30 percent of its revenue from exports, with 30 percent of that coming from the US, this could result in a potential hit on sales or profit margins,” she added. 

In FY2024, ACMA reported that India exported USS$ 6.79 billion worth of auto components to the US. It imported only USS 1.4 billion, resulting in a substantial trade surplus in India's favour. 

Against the backdrop of the broader tariff policy that speaks of a 26 percent duty of Indian exports to US, the discussion between Indian and the US regarding the bilateral trade agreement will assume importance as well as urgency. For US automotive companies to find their way to the Indian market despite their near cult status – the likes of Harley Davidson and Tesla – will only mean facing a competition that is stiffer than expected and a customer mindset that is far different from how it is in the US. 

Srikumar Krishnamurthy, Senior Vice-President & Co-Group Head, Corporate Ratings, ICRA, said, "The US Government has imposed a 25 percent tariff on passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and light trucks (collectively referred to as automobiles), which come into effect from 3 April  2025. As the PV exports from India to the USA represent less than 1 percent of the total PV exports, the tariff imposition of the tariff does not have any material impact on the Automotive OEMs. The scenario is however different for auto components. On 12 March 2025, a 25 percent tariff was imposed on all aluminium and steel components being imported into the US. Subsequent to this, on 26 March 2025, a 25 percent tariff was imposed on other key auto parts as well (including engines, transmissions, powertrain components and key electrical parts except those under USMCA), with processes to expand tariffs on additional parts, if necessary. The effective date is pending but is expected to be no later than 3 May 2025. Auto components have not featured in the latest set of additional tariff announcements that has been made on 2 April 2025. India’s auto components exports accounted for around 29 percent of industry revenues in FY2024. Of this, about 27 percent went to the US. While the situation is evolving, the recent tariff related development and the consequent inflationary pressures and slowdown in demand in the US could have a negative impact on revenue and earnings for component exporters (in the affected product categories) over the next few months. Nevertheless, with higher tariffs being levied on other competing nations, this could also create long-term opportunities for the exporters. Exporters dependent on the US are also trying to diversify their revenue base across other geographies (including Asia). Measures to improve value addition, diversification into non-auto segments and cost-optimisation strategies are also being worked upon to reduce the potential impact on margins.

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BendPak Inc. unveiled the Valor C10, its first custom-built vehicle, at the 2026 SEMA Show. The handcrafted 1970 Chevrolet C10 pickup honours the sacrifice, courage and commitment of the US Armed Forces. Its debut coincided with Veterans Day, lending the salute added poignancy for the company and its staff.

The truck fuses contemporary performance with enduring design, reflecting the American strength, ingenuity and resilience shared by BendPak and the military. Nostalgia Hot Rods, under Dustin Hacker's direction, handled the build, starting with a vintage C10 and retaining little beyond a heavily modified cab. The body-dropped pickup keeps over 4.5 inches of usable ground clearance despite its slammed stance, thanks to Hacker's chassis work. Metallic blue paint with red accents – a body stripe, brake callipers and engine – echoes the US flag, blue for vigilance, perseverance and justice, red for hardiness, sacrifice and the valour behind the truck's name.

BendPak's creative team designed custom Valor C10 badges for both doors, and the cabin pairs a classic bench seat in two-tone gray Alcantara with blue stitching against bespoke door panels and headliner. Power comes from a BTR Gen V Stage 2 supercharged camshaft, a custom 3.5-inch aluminium driveshaft, MagnaFlow 3-inch mufflers and a Holley Terminator X Max engine management system. A Gearstar GM 6L80E six-speed automatic, a custom Eddie Motorsports serpentine system, a Speedtech Extreme G chassis and QA1 four-way adjustable coilovers with cantilever rear suspension complete the mechanical package, alongside Forgeline custom wheels, JL Audio C7 components, a Kenwood 6.8-inch head unit, a PCS electronic gear shift module with wireless paddle shifter, Dapper Lighting custom headlights and taillights in billet housings,and Nu-Relics power windows.

Military service runs deep at BendPak. Founder Don Henthorn, a US Army veteran, started the company in 1965. President and CEO Jeff Kritzer served three years on active duty as a US Air Force C-130 loadmaster before joining the Air National Guard, preserving his flight status and loadmaster duties while launching his BendPak career – a taxing dual role he upheld for three years. He is the son of a senior master sergeant and fellow loadmaster devoted to military service, and his son Devin served with distinction in the US Army, including deployments to the Gulf region and Bangladesh.

Kritzer said, “We call this build the Valor C10 – it was created to honour the brave men and women who have served and continue to serve in our armed forces, especially those who gave their lives in defence of our nation. BendPak proudly supports the military community. This serves as our way of saying thank you and reminding everyone that freedom isn’t free.”

Sean Price, Director of Product Development, BendPak, said, “We’ve worked with Dustin for several years, supplying his shops with BendPak lifts and equipment, as well as showcasing many of his amazing builds in our SEMA Show booths. We knew he had the passion and craftsmanship to bring our vision for the Valor C10 to life.”

Hacker said, “Most of the sheet metal is custom-fabricated, including the roof, hood, drip rails, floors, bumpers, engine bay and bed. Under the hood, there’s a 376-cubic-inch V8 with a 2.9-litre Whipple supercharger. This thing will make 750 horsepower and drive like a dream.”

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ContiTech is expanding its research and development capabilities at its Surface Solutions facility in Pune through investments in a dedicated Colour Lab and prototype development infrastructure, alongside the addition of four roles to its local engineering team. The company has also appointed Alok Pandey as Head of Plant Management Pune to oversee site operations.

The Colour Lab will handle colour development, colour matching, appearance evaluation and material testing for vehicle interiors. While primarily serving automotive manufacturers in India, the facility will also support development projects across the Asia-Pacific, Europe, Middle East, and Africa regions. Coupled with prototype testing equipment, the site will enable validation of surface materials for passenger cars and two-wheelers.

Alexander Scholz, Head of Business India, Surface Solutions at ContiTech, said, “India is a key growth market for our business and an important pillar of our long-term development strategy. As automotive manufacturers increasingly seek localised development support, faster response times and closer technical collaboration, these enhanced local capabilities will help us better support our customers' evolving needs. This investment reinforces our ‘In India, for India’ approach and reflects our confidence in the continued growth potential of the Indian automotive industry.”

Burak Uzel, Head of Design, Surface Solutions at ContiTech, said, “Automotive interiors have become a key differentiator for vehicle brands. Customers increasingly expect premium, comfortable and individualized interior experiences, while OEMs seek innovative and sustainable material solutions. This investment will strengthen our ability to develop and validate colour concepts locally, enabling closer collaboration with customers and supporting the next generation of interior design and material solutions for the Indian market.”

Jan-Philipp Behrndt, Head of Operations Automotive Plants, Surface Solutions at ContiTech, said, “The expertise and dedication of our local teams are key to our success. With the planned expansion of our R&D organization, enhanced technical capabilities and strong local leadership, Pune will continue to grow as an important contributor to our global innovation network. I am confident that the team's expertise and commitment will support our future growth and create additional value for customers.”

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South Korean auto major Kia India and its supplier partners will invest USD 2 billion to establish a second manufacturing facility in Anantapur, Andhra Pradesh, following the signing of a Memorandum of Understanding with the Government of Andhra Pradesh.

The new facility is scheduled to commence production in early 2030. It will add an annual installed capacity of 200,000 units, taking Kia India's combined production capacity beyond 600,000 units per year.

Spread across 465 acres for Kia and its suppliers, the facility will handle stamping, welding, painting and assembly operations for models across internal combustion engine and electric vehicle powertrains.

The project is expected to generate approximately 12,000 direct and indirect employment opportunities, adding to the 24,237 personnel employed across the company's existing 945-acre plant, which holds a production capacity of 430,000 units annually. With the addition of this facility, cumulative investments by Kia and its suppliers across both plants in the state will reach USD 5 billion.

Gwanggu Lee, MD and CEO, Kia India, said, “India is central to Kia’s long-term growth ambitions, and the trust our customers have placed in us since we began operations in Anantapur has been instrumental in our journey. Our second manufacturing plant marks a significant new chapter, strengthening our ability to respond to customer demand with greater speed and flexibility, while supporting the introduction of new models across ICE and EV powertrains. As we enter our next phase of growth, we remain committed to contributing to India’s automotive ecosystem and building on the strong foundation we have created here. This will further expand our Made-in-India footprint, strengthening our ability to serve both domestic and overseas markets.”

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Bengaluru-based electric two-wheeler manufacturer Ultraviolette Automotive is strengthening its senior leadership with the appointment of Abhijit Singh Brar as Head of Marketing.

In this role, Brar will oversee brand positioning, product launch strategies and demand generation as the electric motorcycle manufacturer expands its product portfolio across India and export markets.

Brar brings more than two decades of experience across consumer and automotive sectors. He previously spent over eight years at Royal Enfield, where he established the domestic marketing function and subsequently led marketing operations across Europe, North America, Australia, Latin America and Southeast Asia, managing product introductions and market entries.

Prior to joining Ultraviolette, he held marketing and business strategy positions at Lodha, following earlier brand and commercial leadership roles at Bacardi and Diageo.

Narayan Subramaniam, CEO and Co-Founder, Ultraviolette Automotive, said, "We are excited to welcome Abhijit to Ultraviolette at a significant stage in our growth journey. His role in shaping Royal Enfield's brand journey and supporting its successful expansion across global markets will be particularly valuable as we broaden our product portfolio and reach new segments of riders. Alongside his extensive experience across consumer industries, he brings a deep understanding of consumer aspirations and a proven ability to build brands at scale. We look forward to leveraging his expertise to further strengthen Ultraviolette's position and accelerate our next phase of growth in India and international markets."

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