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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Skoda Auto Volkswagen India (SAVWIPL) and the Automotive Research Association of India (ARAI) have signed a Memorandum of Understanding (MoU) to expand vehicle safety and crash testing infrastructure in Chakan, Pune.

Under the agreement, SAVWIPL will transfer a land parcel adjacent to its Chakan car manufacturing plant to ARAI. The site will be used by ARAI to construct an advanced crash test facility for future mobility vehicles, covering both battery electric vehicle (BEV) and internal combustion engine (ICE) models. The facility will expand domestic validation capacity for electric vehicles, support faster implementation of Bharat NCAP requirements and enable testing needed for international export markets.

H D Kumaraswamy, Union Minister of Heavy Industries and Steel, Government of India, said, "Expanding local R&D and safety testing infrastructure is essential as India's automotive sector advances. This initiative between ARAI and Škoda Auto Volkswagen India strengthens domestic testing capacity for electric vehicles and safety standards. By establishing this facility in Chakan, we are supporting the faster implementation of future Bharat NCAP requirements, helping address India-specific road safety challenges. It will also strengthen the capabilities of OEMs in India to develop vehicles that meet stringent export market requirements."

Piyush Arora, MD & CEO, Skoda Auto Volkswagen India, said, "Vehicle safety and local engineering capability are central to our operations in India. When ARAI required land for a specialised crash test facility adjacent to our Chakan plant, we adjusted our future expansion layout to support their request. As the company whose INDIA 2.0 vehicles were the first India-made cars to achieve 5-star Global NCAP ratings for both Adult and Child Occupant Protection, we have always believed that raising safety standards benefits the entire industry. This strategic partnership will help accelerate the development of safer vehicles in India by shortening EV development timelines, strengthening Bharat NCAP testing, and expanding the country's overall automotive engineering capabilities."

Dr Reji Mathai, Director, ARAI, said, "The future of mobility will be defined not only by innovation but also by the strength of the ecosystem that enables safe, sustainable, and globally competitive vehicle development. This MoU represents a strategic milestone in India’s automotive testing and safety infrastructure. As vehicle technologies evolve rapidly, the need for advanced validation, crashworthiness assessment, and regulatory compliance capabilities will continue to grow. We view this partnership as an important step towards building world-class capabilities that will serve the mobility sector for decades to come."

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Rajendra Petkar, President and long-time Head of Engineering at Tata Motors, is to step down after an illustrious career of nearly four decades, according to media reports.

Petkar has rich experience in vehicle engineering and technology development across passenger cars and commercial vehicles. He has played a key role in reshaping the latest product portfolio at Tata Motors as he drove technological transitions managing Emerging Mobility & Technology Strategy at the automaker.

In his tenure as President and Chief Technology Officer of Tata Motors, Petkar managed an engineering division of over 5,000 personnel spanning technical centres in India, the United Kingdom and Italy.

Petkar led the introduction of battery electric vehicle platforms, the commercialisation of hydrogen fuel cell buses and the initial deployment of hydrogen internal combustion engine (ICE) trucks. Before re-joining Tata Motors, Petkar was deployed from Tata Technologies to Tata Motors between October 1999 and September 2015.

Beyond his corporate roles at Tata Motors, Petkar served as President of the Automotive Research Association of India (ARAI) from 2021 to 2023, Chairman of the Sustainable Mobility Group at the Society of Indian Automobile Manufacturers (SIAM), and Member of the National Automotive Board, alongside holding positions as an Independent Director across multiple corporate boards.

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Hyundai Motor India (HMIL), one of the leading passenger vehicle manufacturers, has concluded the Hyundai Innovation Challenge 2026, shortlisting 16 startups from a pool of 980 applications nationwide to explore technology collaborations and commercial engagements.

Supported by Hyundai Motor Group’s open innovation platform ZER01NE, the challenge was launched in April 2026 across 15 thematic areas, including electrification, smart mobility, connectivity, Advanced Driver Assistance Systems (ADAS), artificial intelligence, customer experience and vehicle technologies.

The 16 shortlisted firms presented their solutions to executive teams from HMIL and Hyundai Motor India Engineering (HMIE) during the Grand Pitch Day on 29 October 2026.

The shortlisted startups comprise Pulse Energy, Novus Hi-tech, CraftifAI, AmpereHour, Enmovil, GoComet, Haulog Technologies, Syook, Unbox Robotics, Motiv AI, AMI Technologies, Dasham Labs, AltMat, Simlioncis, Ravity and EmpFly Services.

As a next step, HMIL and HMIE will evaluate opportunities to engage with the selected entities through paid Proofs-of-Concept, technology validation programs, and pilot implementations to assess the commercial viability of their solutions.

Tarun Garg, MD & CEO of Hyundai Motor India, said, "The Hyundai Innovation Challenge 2026 reflects our belief that the future of mobility will be driven by collaboration between established industry leaders and innovative startups. The enthusiastic participation from startups demonstrates the tremendous entrepreneurial talent and technological capability that exists in India. Through this initiative, we have discovered innovative solutions and established meaningful relationships that can contribute to shaping smarter, safer, and more sustainable mobility experiences. We remain committed to supporting the startup ecosystem and transforming promising ideas into impactful solutions for customers and society."

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TVS Racing has announced that the third season of the TVS Apache Racing Experience GP (ARE) International will begin on 15 November 2026, marking the widest reach yet for the customer-focused championship. The 2026–27 series will visit seven nations – India, Mexico, Colombia, Nepal, Morocco, Egypt and Ivory Coast – as the brand pushes to widen access to competitive riding. Organisers describe the move as a step towards a structured and aspirational entry point into motorsport while extending the company's international racing footprint.

The upcoming season will run multiple categories, including a women's customer class introduced earlier, and will extend to 20 cities with over 1,200 expected entrants. To date, the property has already covered 20 cities and drawn more than 4,000 participants since launching. TVS Racing views the growth as part of a wider mission to make the sport more inclusive and open to ordinary enthusiasts.

Originally launched in 2007, the initiative gave Apache owners a safe, professional setting in which to try competitive racing. It was reorganised into a formal championship in 2023. The 2025–26 edition took the series abroad for the first time, spanning India, Mexico, Colombia and Nepal and closing with a finale at the Madras International Circuit in Chennai. The third season builds on that foundation.

The championship now serves customers, enthusiasts and budding racers alike, drawing them together around performance and competition. The Apache line has over seven million international customers, backed by the Apache Owners Group, which counts more than 500,000 registered members. More details are available on the company website.

Vimal Sumbly, Head – Premium Business, TVS Motor Company, said, “TVS ARE GP has grown from a customer racing platform into a championship that embodies TVS Racing’s belief in making competitive motorsport more accessible and creating a strong pathway for racing talent. As we enter Season 3, our expansion to seven countries marks an important step in taking this racing ecosystem to a truly global stage. For us, this is not simply about expanding the championship’s footprint but about extending our racing culture, expertise and standards to riders across markets while creating opportunities for emerging talent to experience competitive racing. With a strong foundation built on championships and a deep understanding of grassroots motorsport, TVS ARE GP is evolving into a globally connected platform that will continue to nurture riders, strengthen racing communities and take the spirit of TVS Racing to the world.”

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