- US President Donald Trump
- 2 April 2025
- American Industry
- broad new tariff policy
- duty
- imports
- India
- 26 percent
- ‘discounted' reciprocal tariffs
- China
- Countries
- auto industry
- ancillary
- ACMA
US President Donald Trump Announces Retaliatory Tariffs; Indian Government Carefully Examining The Implications
- by Bhushan Mhapralkar
- April 03, 2025

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.
Image for representative purpose only.
- Maruti Suzuki India
- Suzuki Motor Corporation
- Osamu Suzuki Centre of Excellence
- OSCOE
- Osamu Suzuki
Suzuki Motor Corp, Maruti Suzuki India To Establish Osamu Suzuki Centre Of Excellence
- by MT Bureau
- April 23, 2025

Japanese automotive company Suzuki Motor Corporation, along with Maruti Suzuki India, aims to establish the Osamu Suzuki Centre of Excellence (OSCOE) in India as part of their tribute to Late Osamu Suzuki, Former Chairman, Suzuki Motor Corporation.
The former chairman was instrumental in bringing Japanese concepts of manufacturing in India, alongside being instrumental in advancing the automotive industry in the country.
The announcement was made as part of the remembrance event held today for Late Suzuki at Yashobhoomi, Delhi Corporation, who passed away on 25 December 2024, in Japan.
The new OSCOE is proposed to be located in Gujarat and Haryana, and will work towards fulfilling the following objectives:
Support national objective of high manufacturing growth.
Raise the standard of component manufacturers (including tier-1, 2 & 3) to make supply chains of the country globally competitive.
Build infrastructure and develop programmes in collaboration with academia and others to propagate Japanese manufacturing philosophy. The programme would include, but not limited to formal teaching, lectures, discussions and seminars among others.
It will also focus strengthening the manufacturing landscape beyond just automotive sector.
For the unversed, Osamu Suzuki played a crucial role in making car ownership accessible to the common man in the country and driving automotive manufacturing, innovation in India. He won many global awards and recognitions such as -
Year | Recognition/Award |
1987 | Medal with Blue Ribbon, Japan |
1993 | Commander’s Cross of the Hungarian Order of Merit, Hungary |
2000 | The Order of the Rising Sun, Gold and Silver Star, Japan |
2002 | Inducted into a Hall of Fame of Japan Automobile Hall of Fame |
2004 | Commander’s Cross with the Star of the Hungarian Order of Merit, Hungary |
2007 | Padma Bhushan, India |
2020 | Grand Cross of the Hungarian Order of Merit, Hungary |
2024 | Senior Fourth Rank, Japan |
2025 | Padma Vibhushan, India |
- Renault Design Centre
- Renault Group
- Renault Nissan Technology & Business Centre India
- RNTBCI
- Renault India
- Laurens van den Acker
- Venkatram Mamillapalle
- Game Plan 2027
Renault Group Opens New Design Centre In India As Part Of Its Renault.Rethink Transformation Strategy
- by MT Bureau
- April 22, 2025
French auto major Renault Group has inaugurated its new Renault Design Centre in Chennai, as part of its new India-centric transformation strategy – renault. rethink.
The new design centre further strengthens the company’s ‘design in India’ and ‘make in India’ strategy. It is also expected to function as a hub of excellence, particularly due to its proximity to Renault Nissan Technology & Business Centre India (RNTBCI).
Laurens van den Acker, Chief Design Officer, Renault Group, said, "India is highly unique and locally driven. Having a dedicated design studio is essential to understanding its nuances, listening to its needs and building from its strengths. The Renault Design Centre Chennai will focus on developing models and concepts tailored to the Indian market while contributing to Renault Group’s global projects. By leveraging local talents and insights, this centre will play a key role in shaping Renault’s future mobility solutions. Its strategic location - at the heart of RNTBCI’s excellence hub - also enables closer collaboration across functions and faster integration of design into our engineering and innovation processes.”
Renault shared that the year 2025 marks an inflection point for the automaker in India, as it gears up to strengthen its presence in the world’s third-largest automobile market.
Venkatram Mamillapalle, Country CEO and Managing Director, Renault India Operations, said, "The launch of the 'renault. rethink' strategy heralds a new era for Renault in India. We are proud to be the most Indian of European carmakers, boasting the largest R&D centre, manufacturing unit, highly localised supply chain and now one of the largest design centres. The opening of new design centre in Chennai will play a crucial role in the deployment of the Renault International Game Plan 2027. Our commitment is to redefine our brand, product positioning, and customer experience to meet the evolving needs of our customers in the country, hence we recently witnessed the global debut of new ‘R store’ in Chennai, India."
It has renewed its commitment for India with a 90 percent localisation target, and the recent takeover of the alliance’s manufacturing plant RNAIPL.
In 2024, Renault Group clocked a record EUR 4.3 billion in profit, which is 7.6 percent of its revenue, and saw its revenue grow to EUR 56.2 billion, up 7.4 percent YoY.
Design & Engineering in India
At present, Renault Group’s Chennai R&D centre is one of its largest globally, with around 10,000 engineering working on global and local projects. Now, the Renault Design Centre Chennai extends over 1,500 metre and is equipped with the latest technologies. It features a high-tech environment designed for 3D model evaluation and virtual reality experiences, a next-generation visualisation studio, a creative collaboration zone, high-performance LED wall, advanced VR integration and a harmonious blend of European and Indian Design.
“renault. rethink is more than a sculpture – it’s a bold expression of Renault’s vision for India. It symbolises our commitment to innovation and to designing cars in India, for India. This artwork captures the energy of a nation in motion, a future taking shape, and Renault’s ambition to be part of this exciting journey,” stated Acker.
- Society of Indian Automobile Manufacturers
- SIAM
- Rajesh Menon
- Shailesh Chandra
- auto sales
- car sales
- two-wheelers
- three-wheelers
- commercial vehicles
India’s Auto Industry Rides the Momentum: Record Highs & Renewed Optimism Mark FY 2024-25
- by Nilesh Wadhwa
- April 15, 2025

The latest data released by the Society of Indian Automobile Manufacturers (SIAM) show that the Indian automotive industry wrapped up FY 2024-25 with a solid performance, driven by resilient domestic demand, an uptick in exports, and a renewed push toward green mobility.
While the pace of growth varied across segments, the industry overall clocked a healthy 7.3 percent increase in domestic sales, reinforcing its steady recovery trajectory in a post-pandemic economy.
The passenger vehicles segment posted its highest-ever annual sales, breaching the 4.3 million mark – a 2 percent rise over the previous year. Although the high base of FY 2023–24 tempered the growth rate, the segment continued to impress with its scale.
SUVs emerged as the dominant sub-segment, accounting for 65 percent of total PV sales, up from 60 percent last year.
The market responded enthusiastically to new launches and customer demand towards higher ground clearance models. It is also important to note that discounts and promotions kept demand buoyant.
On the exports front, a record 770,000 units were shipped, up 14.6 percent, fuelled by demand from Latin America, Africa and emerging interest from developed markets.
India’s ubiquitous two-wheelers rebounded strongly with 19.6 million units sold, marking a 9.1 percent growth over the previous year. The scooter category led the charge, boosted by improved rural and semi-urban road connectivity.
EV penetration crossed 6 percent, reflecting a growing preference for sustainable options.
Two-wheeler exports rose by 21.4 percent, supported by macroeconomic stability in Africa and expansion into Latin American markets.
The three-wheeler segment on the other hand scaled new highs with 741,420 units sold, a 6.7 percent growth over FY 2023–24. Urban and semi-urban demand for last-mile transport, especially electric models seem to have played a key role.
The commercial vehicles segment posted a slight 1.2 percent decline in annual sales, though Q4 offered a glimmer of hope with a 1.5 percent uptick. Light CVs struggled, while Medium & Heavy CVs (M&HCVs) remained steady. Infrastructure development spurred demand for buses and higher-GVW trucks.
CV exports jumped by 23 percent, indicating global recovery in freight mobility.
In terms of EV sales, the country saw 1.97 million green vehicles sold, up 16.9 percent, with electric two-wheelers seeing a 21.2 percent rise in registrations.
Looking Ahead: Optimism with Caution
The industry body stated that going forward leaders are cautiously optimistic about FY 2025–26. Normal monsoon forecasts are expected to aid rural demand. Recent personal income tax reforms and RBI rate cuts could boost vehicle financing and overall consumer sentiment. Continued export momentum, especially in Africa and neighbouring regions, will offer strategic resilience.
But on the other hand, challenges loom in the form of global geopolitical tensions and evolving supply chain dynamics.
Shailesh Chandra, President, SIAM, said, “The Indian automobile industry continued its steady performance in FY2024–25, driven by healthy demand, infrastructure investments, supportive government policies and continued emphasis on sustainable mobility. Passenger vehicles, two-wheelers and three-wheelers grew in FY2024-25 compared to FY2023-24, but growth rates have been varied across segments. Passenger vehicles and three-wheelers witnessed a moderate growth on account of the high base effect but saw the highest-ever sales in these categories, while the two-wheeler segment registered strong growth in FY2024-25. However, commercial vehicles witnessed a slight degrowth in the FY2024-25, though performance in recent months has been comparatively better. On the exports front, good recovery is seen across all segments, particularly passenger vehicles and two-wheelers reflecting improved global demand and India's growing competitiveness. In FY2024-25, the government of India introduced the PM E DRIVE scheme and PM e-Sewa schemes which underscores the firm commitment of the Government towards promoting sustainable mobility. Looking ahead, the backdrop of stable policy environment, along with recent measures such as reforms in personal income tax and RBI’s rate cuts, will help in supporting consumer confidence and demand across segments.
- Mahindra & Mahindra Ltd
- M&M
- Mahindra India Design Studio
- MIDS
- state-of-the-art
- creative facility
- significant
- leap
- automotive
- industrial design
- Kandivali
- Mumbai
- expansiion
- existing design studio
- new
- modern
- equipment
- Kolb clay milling five-axis milling centre
- prototyping
- exterior
- interior
- time-to-market
Mahindra Unveils Future-Ready India Design Studio To Shape Next Generation Automobiles
- by Bhushan Mhapralkar
- April 07, 2025

Mahindra & Mahindra Ltd (M&M Ltd) has inaugurated the Mahindra India Design Studio (MIDS), a state-of-the-art creative facility that marks a significant leap ahead in the company’s automotive and industrial design capabilities.
Located in the group’s automotive manufacturing site at Kandivali in Mumbai, MIDS marks the expansion of the existing design studio at the same location with the addition of new and modern equipment such as the Kolb clay milling machine with two five-axis milling centres on a single ‘bed’ that would enable prototyping of two projects – an exterior or interior of a vehicle, two exterior works or more – at the same time in an effort to contribute to time-to-market.
Marking the doubling of the studio size and reaffirming M&M's commitment to design excellence as a cornerstone of the product development strategy, the MIDS has also acquired a new paint booth to support paint design and development activities regarding new designs.
With ‘Heartcare’ design philosophy driving the group’s push into the SUV space, the MIDS will also work on other automotive areas such as commercial vehicles and tractors.
Marking a significant upgrade of a facility that was originally set up in 2015 as a dedicated studio to support M&M's auto and farm business, the newer and bigger set up is already tapping the growing talent in the respective field in the country.
To be headed by Ajay Saran Sharma, the MIDS will have a 100 strong team to drive design project management, concept design, digital designing, physical modelling, studio engineering, CMF design, design quality/Realisation and HMI/UI/UX. The finer elements would include exterior and interior designing, visualisation, clay modelling, prototyping and more.
Capable of supporting working progress on two or three projects at the same time and not just regarding passenger vehicles but also regarding commercial vehicles and tractors, MIDS will serve as a collaborative bridge between India and Mahindra’s global design outpost – the Mahindra Advanced Design Europe (MADE).
Aiming to inspire innovation by blending digital tools with hands-on craftsmanship, MIDS will play a central role in shaping vehicles and experiences that are distinctly global, yet Indian.
“It is a pleasure to have this new avatar of Mahindra India Design Studio commissioned. With state-of-the- art design spaces and machinery backed by world-class skills that hugely expands its capability and capacity, the footprint of the space stands doubled to take on and deliver the ever-expanding project portfolio across businesses. The end-to-end delivery on projects from the first concept sketch through to production stands further strengthened with the new working structure that along with the classic design verticals includes new functions such as HMI Design, Design Quality & Realisation,” explained Sharma.
Pratap Bose, Chief Design and Creative Officer, Mahindra & Mahindra Ltd, averred, “We are thrilled to inaugurate our future ready Mahindra India Design Studio bringing world class design technologies and tools to create stunning, design outcomes across our Auto and Farm businesses. The new studio will attract the best design talent from India and become a leading automotive design centre in India. The influence of MIDS on our products will be felt for many years to come.”
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