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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The Society of Indian Automobile Manufacturers (SIAM), the apex body representing the automakers in India, recently organised the Automotive HR & Skilling Conclave 2025 in Chennai, Tamil Nadu, on 31 October 2025.

The event, themed ‘Accelerating Ahead: HR and Skilling for the Future of Mobility’, focused on the evolving landscape of human resources and skill development within the mobility sector.

The conclave saw participation from government officials, Chief Human Resources Officers (CHROs) of automotive firms, HR specialists and academics. Key sessions addressed topics including ‘Driving Industry Readiness: Aligning Talent, Skills & Business Goals’ and ‘Healthy, Inclusive & High-Performing: The New Workforce Mindset’. These discussions aimed at shaping a workforce ready for the future, strengthening industry-academia links, and fostering progressive work cultures.

C V Ganesan, Minister for Labour Welfare & Skill Development, Government of Tamil Nadu, observed the significant role of HR leads. He said, “HR leaders of auto companies have greater responsibilities, as they need to take care of thousands of skilled professionals working for their organisations.”

K Veera Raghava Rao, Secretary, Labour Welfare & Skill Development, Government of Tamil Nadu, highlighted the need for appropriate skills, stating, “There is a need to ensure that we have appropriately skilled people to support the ever-evolving technological landscape and to ensure that the investments made by companies are sustained.”

Industry leaders stressed the sector’s contribution to the economy and employment. Dr. Natwar Kadel, Chairman, SIAM Human Capital Group, and Vertical Head- People Strategy, Hyundai Motor India, said, “HR leaders of Auto Industry have a responsibility to ensure we continue to unlearn, relearn and innovate ourselves in a sustained manner.”

Focusing on investment in future talent, Prabhu Nagaraj, Co-Chairman, SIAM Skilling Group and Operating Head - Corporate Affairs, Honda Motorcycle and Scooter India, commented, “Investing in skills today is the key to building a strong industry tomorrow. Let us continue to collaborate, innovate, and invest in our people, because the future of mobility will be built not just in factories, but in classrooms, workshops, and training centres across India.”

Madhuri Mehta, Co-Chair, SIAM Human Capital Group and CHRO, Hero MotoCorp, said, “Auto Industry needs to evolve itself to meet the expectations of the Gen-Z as they integrate into this Industry.”

Senior HR personnel from companies including Ashok Leyland, Hyundai Motor India, Mahindra & Mahindra, Royal Enfield and Tata Motors also contributed insights during the event.

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The ADAS Show, touted as one of India’s major automotive future mobility events, has been rescheduled to 12 February 2026 from the originally planned 12 December 2025.

The postponement has been due to the prolonged heavy rains in the Pune region, which have hampered the completion of the ADAS TEST CITY infrastructure.

The event will be held at the ADAS TEST CITY within ARAI’s Mobility Research Centre in Takwe, Pune, which is a proving ground designed for the validation of Advanced Driver Assistance Systems (ADAS) and autonomous vehicles. Organisers noted that achieving the required precision for the track surface and infrastructure before December 2025 was not possible despite continuous effort.

The show, organised by Aayera, will feature live ADAS testing demonstrations by ARAI using its instrumentation. The event will also see automakers, Tier-1 suppliers and technology innovators showcase their solutions at India’s first ADAS smart city.

Syed Fareed Ahmed, Director, Aayera, said, “This extended timeline opens doors for expanded collaborations with global ADAS and autonomous technology companies, offering a larger and more robust platform for live track demonstrations, product launches and international partnerships.”

What’s more, Israel-based Foresight Automotive has also confirmed its participation at the event, where it showcases its solutions designed to provide accurate, real-time detection in complex environments for both commercial and passenger vehicles.

It will present its perception capabilities using live camera streams from both visible-light and thermal cameras. The demonstration will focus on generating depth maps and high-density 3D point clouds, which supply detailed spatial information to enhance obstacle detection and segmentation.

The company states its scalable platform is built specifically for India’s diverse conditions, from heavy urban congestion to rural roads and varying weather, supporting current Advanced Driver Assistance Systems (ADAS) needs while enabling future vehicle automation.

Annat Himmel, Vice-President of Research and Development, Foresight, will participate in a panel discussion titled ‘ADAS for the Indian Market – From Premium to Mass Adoption’ on 12 February 2026.

Oren Bar-On, Co-Chief Executive Officer, Foresight Automotive, said: “ADAS Test City provides an important platform to showcase how advanced perception technology can enhance road safety in India. We are excited to demonstrate how our 3D perception solutions not only support today’s ADAS capabilities but also lay the groundwork for the next generation of autonomous vehicles, unlocking safer and smarter mobility for the future. Foresight looks forward to strengthening collaborations with Indian OEMs, Tier-One suppliers, and technology partners to support India’s growing ADAS ecosystem.”

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Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers, has announced that 100 members of its workforce will travel to Japan to participate in the Global Skill-Up Training (GST) program at Toyota Motor Corporation.

The initiative aligns with the Government of India’s Skill India Mission and the Technical Intern Training Program (TITP), a framework between the Governments of India and Japan for skill development and talent exchange.

The Global Skill-Up Training program in Japan is an 11-month program, combining classroom sessions with on-the-job training. It focuses on Toyota’s core principles, while also preparing trainees with Japanese language, culture and civic responsibility to prepare for global integration.

The automaker, an NSDC-approved Sending Organisation, has facilitated the overseas training of over 1,000 youth to countries including Japan, Jordan, Qatar and Slovakia.

G Shankara, Executive Vice-President, Finance and Administration, Toyota Kirloskar Motor, said, “We at Toyota Kirloskar Motor are deeply committed to nurturing globally competitive talent from India. The Global Skill Up Training Program is more than just a learning opportunity; it is a journey to experience excellence, discipline, innovation, and respect on a global stage. Through this initiative, we aim to empower our youth with world class technical expertise and the values that define Toyota’s culture, while contributing to the Government of India’s Skill India vision. Together, we aspire to make India a global hub for people, solutions, and automobiles, and together we will make that vision a reality.”

Dr. Sharanaprakash Rudrappa Patil, Minister for Skill Development, Government of Karnataka, said, “We are proud to see our youth getting access to this global opportunity with Toyota. This program aligns strongly with our vision to position Karnataka as a hub for advanced skills while empowering rural talent to access world-class career opportunities.”

Sonal Mishra, Additional Secretary, Ministry of Skill Development & Entrepreneurship (MSDE), Government of India, said, “The collaboration between MSDE and Toyota under the TITP framework represents India’s growing role as a trusted global source of highly skilled professionals. This international apprenticeship opportunity will accelerate India’s contribution to global value chains and enable our youth to build future-ready careers.”

Till date, Toyota Kirloskar Motor has trained and empowered over 140,000 youth across India through its multi-tier skilling initiatives, including the Toyota Technical Training Institute (TTTI) model.

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Uber for Business, the enterprise division of Uber, has appointed Rituraj Chaturmohta as the Senior Country Manager for India & South Asia.

In his new role, Chaturmohta will lead the division’s growth strategy, focusing on strengthening partnerships with organisations, enhancing enterprise mobility solutions and driving innovation in corporate travel and employee transportation.

Chaturmohta joins Uber with experience in marketplace and platform businesses. He previously served as Head of Sales and Business Development at Airbnb.

Eric Lee, Regional General Manager and Head of Uber for Business - APAC, said, “We are delighted to have Rituraj join our leadership team to drive Uber for Business’ growth and partnerships in India and South Asia. His experience in building and scaling platform businesses, combined with his understanding of the Indian market will be instrumental in strengthening our enterprise offering.”

Rituraj Chaturmohta, Senior Country Manager, Uber for Business, India and South Asia, said, “I am thrilled to join Uber for Business to lead India and South Asia, one of Uber’s most dynamic growth markets. Uber for Business is reimagining how businesses move - with scale, sustainability, and customer centricity at the core. My focus is to deepen Uber’s relationships with our business clients, build tailored mobility solutions that drive measurable ROI, and make Uber for Business a growth partner for every company operating in this region.”

Uber for Business manages travel, meals, and commute programmes for over 200,000 organisations worldwide. In India, the division currently assists over 8,000 organisations with solutions for business travel, daily commutesand employee shift transportation.

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