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.

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The Federation of Automobile Dealers Associations (FADA) has successfully wrapped up the third edition of Vyapar Delhi alongside the 22nd national Vyapar conclave at Le Méridien in New Delhi. Centred on the theme ‘Vyapar Delhi – Badalti Dilli’, the event gathered over 200 automobile dealers, senior policymakers, original equipment manufacturer leaders, financial institutions, and domain experts. Their goal was to deliberate on the future of automotive retail and mobility within the National Capital Region.

The event was honoured by the presence of Rekha Gupta, Chief Minister of the Government of NCT of Delhi, as the chief guest. Key policy discussions tackled pressing dealer challenges, including the draft Delhi Electric Vehicle Policy, the vehicle scrappage policy, the Municipal Corporation of Delhi’s classification of workshops as industrial versus commercial and the long-pending compensation cess issue. A dedicated technical session offered legal clarity on the cess and a path forward to protect dealers’ legitimate financial credits.

A major highlight was the panel discussion titled ‘Badalti Dilli: Reimagining Passenger Mobility in India’s Capital’, featuring senior leaders from JSW Motors, Volvo Car India, Honda Cars India, BYD India and Nissan Motor India. They explored changing consumer expectations, electrification pathways, product strategy and dealers’ role as critical enablers of India’s mobility transition. Additional sessions covered artificial intelligence-led dealership transformation, future-ready retail practices, and presentations from finance and technology partners.

Road safety remained a strong undercurrent throughout the day, with FADA reaffirming its commitment to helmet and seatbelt awareness, responsible driving behaviour and first response training including CPR at dealership levels. Vyapar Delhi 2026 ultimately reaffirmed FADA’s role as a constructive stakeholder in shaping policy, supporting environmental goals, strengthening road safety outcomes and safeguarding livelihoods.

The Chief Minister said, "We are committed to the mission of a 'Clean Delhi, Green Delhi, and Smart Delhi.' Our government has introduced the country’s most comprehensive EV Policy, allocating INR 40 billion over the next four years to provide subsidies, tax waivers and scrapping incentives that drive us toward green mobility. To tackle pollution at its source, we are revolutionising our transportation sector through massive investments, for the Metro and the establishment of automated fitness centres to ensure every vehicle on our roads is fit and emission-free. A 'Viksit Bharat' by 2047 is only possible with a 'Viksit Delhi.' I call upon our automobile dealers to act as the government's 'working hands' in motivating citizens to shift to clean energy. We are streamlining our policies to make registration easier and more efficient, ensuring that the people of Delhi have a world-class, environment-friendly experience right here in the capital. Together, we will transform Delhi into a city that defines the future of sustainable urban living."

Reiterating FADA’s continued engagement with policymakers, leadership development through FADA Academy, GenX and Women in FADA, as well as sustained legal efforts on the Compensation Cess matter, C S Vigneshwar, President, FADA, said, “Delhi is in motion, not just on its roads, but in its ambition, and at FADA, we believe automobile dealers must be full partners in this transformation. While we fully support the city’s commitment to a greener future and the Draft EV Policy, it is vital that this transition includes the 17,500 trained professionals whose livelihoods are woven into Delhi’s automotive ecosystem. Our vision of ‘Badalti Dilli’ is one where enablement moves faster than enforcement, where economic growth, road safety initiatives like CPR training and our ‘Buckle Up’ campaign and environmental responsibility progress together without leaving anyone behind.”

Shailender Luthra, Chairperson, FADA Delhi, said, “Today’s gathering reflects a changing Delhi and an evolving auto retail trade. The sector today is vastly different from what it was five years ago, and we are witnessing a significant shift driven by rising consumer confidence and aspiration, with Delhi recording a 17 percent growth in vehicle sales as of March 2026. Annual new vehicle registrations stood at nearly 800,000 units. Our industry remains a vital pillar of the city’s economy, with 550 dealership outlets providing employment to over 55,000 individuals and contributing approximately INR 71.5 billion to Delhi’s revenues through motor vehicle taxes and GST – INR 26.5 billion annually in motor vehicle tax and INR 45 billion as GST contribution from the auto sector. The data clearly shows that India is no longer debating electric vehicle adoption; it is actively embracing it. Delhi has witnessed a sharp increase in electric commercial vehicles and a 62 percent rise in electric two-wheeler adoption. To support and lead this transition, FADA has proposed to the Delhi Government the installation of 150 public charging stations at our own cost. In parallel, we are committed to strengthening local employment through skill development centres at ITIs and have also proposed the establishment of a vehicle scrappage centre to further support the government’s environmental objectives. At FADA, we believe we are doing far more than selling vehicles – we are shaping the future of mobility. As Delhi and its businesses evolve, I am confident that our dealers will not only keep pace with change but will lead this vital transformation towards a sustainable future.”

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Škoda Auto follows up its 2025 Milan Design Week debut with another appearance at Palazzo del Senato. The carmaker has commissioned Spanish architect Ricardo Orts, whom Forbes listed among the top 100 creative business people in 2024, to build an installation centred on modelling clay. That same playful material anchors the advertising push for the forthcoming Epiq, a compact electric crossover. Visitors will see the camouflaged vehicle alongside Orts's large scale works, all designed to showcase how Škoda currently thinks about form and function.

Palazzo del Senato hosts this event from 21 to 26 April. Orts, who runs Ulises Studio, has filled the Baroque courtyard with bright colours that blur the line between screens and physical space. Two pieces take centre stage: the hidden Epiq and a sculptural version called Epiq Sculpt. Their modern look clashes boldly with the historic architecture. The slogan woven through the presentation highlights a feeling of pleasant surprise: ‘Ooooh, that’s EpiQ!’

Beyond the main display, the open atrium offers several draws. A digital corner uses an LED screen to let people explore the Epiq and the brand. There are quiet zones, an open seating area, a space for children and a corner for group exercise and wellness talks. A Škoda Elroq has been turned into a mobile café selling Curiosity Fuel Coffee. Design leader Chan Park will join Orts for a conversation called Epiq Talks, giving guests a closer look at the project's origins.

Škoda Auto uses its Milan presence to champion curiosity, transformation and hands on discovery. The setup welcomes quick stops for a drink as well as full day visits with exercise sessions and discussions. Everyone from young children to design enthusiasts will find something engaging. The ultimate goal is to help people feel wonder again and enjoy how art can reshape ordinary spaces.

Martin Jahn, Škoda Auto Board Member for Sales and Marketing, said, “Milan Design Week allows us to further elevate the Škoda brand and present it far beyond the automotive world – as a brand driven by design, creativity and innovation. Our installation brings the Modern Solid design language to life in a playful, immersive way that invites people to experience our brand, not just observe it. At the heart of this presentation is the Epiq – a clear expression of our ambition to make electric mobility more accessible and to inspire new customer groups through design-led storytelling.”

Orts said, “Škoda Auto fits naturally into my visual world. It combines playfulness and accessibility with a strong technical and carefully considered design language. This balance between imagination and precision deeply resonates with my own work.”

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The German Rubber Industry Association (wdk) has expressed deep concern over the widening gap between automotive manufacturers and their suppliers in Germany, a trend observed for the first time since 2025. Managing Director Boris Engelhardt noted that many industry suppliers are fighting for economic survival. While car manufacturers continue to grow, German suppliers are shrinking. Engelhardt condemned automakers for demanding financial concessions from struggling suppliers, warning this threatens their very existence.

For decades, German automakers and suppliers worked hand in hand to achieve global leadership. Engelhardt argues this cooperation is now being abandoned as carmakers shift to cost-driven strategies, jeopardising Germany’s future as an innovative production hub. Since 2019, global disruptions have forced suppliers to reduce capacity while remaining flexible, but limits have now been reached.

Projected write downs of EUR 65 billion for 2025 stem from a lack of technological foresight in government mobility regulations. Engelhardt emphasised these consequences are no surprise, as the association warned more than a decade ago. Yet automakers now demand massive price reductions from shrinking suppliers instead of offering support.

Engelhardt concluded that solidarity is not a one-way street. After years of supplier flexibility, it is now the automakers’ turn to act responsibly. Preserving Germany’s automotive supplier base requires shared burden sharing, not unilateral financial demands from manufacturers.

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Scania has completely reworked its Services 360 portfolio by introducing a dedicated offering for new electric trucks, which now covers every operational need including battery care. At the same time, the company has rolled out flexible coverage plans for second-hand combustion engine vehicles, allowing owners of used trucks to choose from different levels of repair, maintenance and productivity support. This move reflects rising sales in both the new electric and used diesel truck segments.

Originally launched in 2024, the Services 360 portfolio was built around smart flexible maintenance planning and a range of digital tools. It already provided customised packages suited to fleets of any size or powertrain type. Now, Scania has extended Services 360 to include used vehicle customers, who are often more price sensitive. For them, four distinct packages called Core, Plus, Full and Pro are available, offering progressively deeper coverage. Core includes basic fleet maintenance and digital monitoring, while Pro adds proactive and powertrain repairs.

For owners of battery electric trucks, Scania offers the Full package within Services 360. By broadening access to these tailored service levels, the company reinforces its commitment to customer profitability across all business types. This expansion ensures that whether a customer operates new electric trucks or used conventional ones, they receive a competitive and customized service solution designed to keep their vehicles running efficiently and profitably.

Lars Gustafsson, Senior Vice President and Head of Trucks at Scania, said, “We want our battery-electric truck customers to only focus on maximising the use of their vehicles. By offering a single service level – Full – we ensure that every repair, every interaction between systems and every unexpected issue is handled and covered by Scania, giving our electric truck customers all the support they need. We pride ourselves in being close to our customers’ pain points, and extending Services 360 is a way to reach even more transport operators and cover the full ecosystem of needs around their business. No matter the type of powertrain, operation or business sector, the underlying goal of Services 360 is to support the customer and make them more profitable and sustainable for the long term.”

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