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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Chennai-headquartered electric vehicle company Raptee.HV has opened an electric mobility Centre of Excellence at Rajalakshmi Engineering College, establishing an industry-academia partnership focused on electric vehicle technology.

The new facility, inaugurated on World EV Day, is spread across 3,000 square feet and will operate under the Raptee.HV Academy initiative will introduce industrial exposure and prototyping tools to academic institutions.

The project represents an INR 5 million investment and accompanies a Memorandum of Understanding signed between Raptee.HV and Rajalakshmi Engineering College. The agreement covers industrial training, site visits, guest lectures, internships, academic courses and research projects.

It is designed for students across electrical, electronics and automotive engineering; the laboratory contains a Raptee.HV T30 motorcycle, core electric vehicle components, a stripped motorcycle fitted with digital twin technology and equipment for testing battery packs, electric motors, power electronics, charging systems, vehicle communications and diagnostics.

Dinesh Arjun, Co-Founder and CEO, Raptee.HV, said, "The next generation of mobility will be built by engineers who understand the machine from the cell to the software. But you cannot build that understanding from a classroom alone. You have to get your hands dirty, take systems apart, question how they work, experiment and build again. The HV Lab is our attempt to bring that experience into engineering education. If even a few students walk out of this lab wanting to build the next great EV technology, we have done our job."

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Zuno General Insurance has launched Fuel Guard, a car insurance add-on offering financial protection against component damage caused by manufacturer-approved blended fuels.

The policy addition targets private motor vehicles in India as alternative and blended fuel adoption expands across the country. The coverage applies to specified engine and fuel-system parts in cases of accidental or unforeseen damage arising directly from approved blended fuel use.

At present, the insurance cover eligibility is restricted to private cars registered on or after 1 April 2023, provided the vehicle manufacturer has endorsed the specific fuel blend used. Vehicle owners must adhere to the manufacturer's prescribed maintenance schedule without making unauthorised modifications to the engine or fuel system. Fuel Guard can be added to private car package policies, standalone own-damage coverage, bundled options and three-year long-term policies.

Shanai Ghosh, Managing Director and CEO, Zuno General Insurance, said, "At its core, Fuel Guard is built around a simple idea: as the mobility ecosystem evolves, insurance protection needs to evolve with it. At Zuno, we continuously look at how changes in mobility are shaping customer expectations and ownership experiences. Fuel Guard reflects our effort to translate those insights into simple, practical solutions that make protection more relevant in everyday life."

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JSW Group and Volkswagen Group have signed a non-binding memorandum of understanding (MoU) for a proposed 51:49 alliance involving JSW Green Mobility Limited and Skoda Auto Volkswagen India Pvt Ltd. No official statement or press release has been issued by either the JSW Group, Skoda/Volkswagen yet regarding the development. 
“The signing of the non-binding MoU has actually taken place,” claimed an industry source. Pointing at the news in Economic Times, he said, “The non-binding MoU paves way for further negotiations between the two organisations in terms of valuation and other factors.” 
“The non-binding MoU would explore setting up of a strategic joint venture in India that would develop, manufacture and sell passenger vehicles for the domestic as well as international markets,” he added. 
Stating that the nature of vehicles would include ICE, electric and hybrid powertrain ones, the source averred, “The non-binding MoU would pave the way for internal approvals, regulatory clearances and other nitty-gritties such as sourcing, manufacturing, technology, localisation, management etc. before a concrete structure is engineered by both the companies and the groups that control them by the end of this year or early next year. 
Entering India is 2000, Skoda, the Czech passenger vehicle arm of the Volkswagen Group has been driving activities for Volkswagen and Skoda brand of vehicles in India. While the Chakan (Pune) plant has been under Volkswagen, the Shendre MIDC (Chhatrapati Sambhaji Nagar) plant has been under Skoda. The Volkswagen Group premium luxury vehicles of the Volkswagen, Skoda and Audi brand are assembled at the Shendre MIDC facility. It has been some time that the Volkswagen Group is looking to turn the Indian operations into a regional hub catering to the immediate neighbouring markets among others. 
Holding a 35 percent stake in JSW MG Motor India, which involves SAIC Motors and is separate from JSW Green Mobility, the JSW Group has presence across steel, infrastructure, energy, cement, paints and automobiles. While there have been reports indicating plans to increase its holding to 45 percent in JSW MG Motor India, the Group has committed up to USD 3 billion over five years in investment in its automotive arm, which includes the building of a greenfield manufacturing footprint at Chhatrapati Sambhaji Nagar. 
The development about the non-binding MoU between JSW Group and Volkswagen Group, the source claimed, has taken place at around the same time the CEO of Skoda Auto, Klaus Zellmer, and the CEO of Volkswagen, Thomas Schäfer, were visiting India. 
 

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Japanese automotive major Honda has become the first company globally to earn a five-star rating in the products and services category of the FIA Road Safety Index. The award was presented at the Autodromo Nazionale Monza during the FIA Formula One Italian Grand Prix.

The FIA Road Safety Index measures organisational impacts on road safety across operations, supply chains, products and services. The FIA expanded the index from a 3-star to a 5-star framework, introducing modules for planning, performance monitoring, safety culture management and supply chain or product coverage.

To qualify for the updated framework, Honda expanded its assessment scope to cover 17 countries, representing over 90 percent of its global motorcycle and automobile sales volume. The evaluation reviewed Honda's safety governance, global fatality tracking, safety technology deployment and traffic safety data disclosures. The company maintains targets to halve traffic collision fatalities involving its vehicles per 10,000 units sold by 2030 compared to 2020 levels, with a long-term goal to eliminate traffic collision fatalities by 2050.

Mohammed Ben Sulayem, President, FIA, said, “Road safety remains one of the world’s most urgent challenges, and no single organisation or sector can address it alone. Progress depends on action at scale across the public and private sectors, uniting all stakeholders around our shared goal of saving lives on the road. The FIA has an important role to play in accelerating that change for road users worldwide. Alongside our work with companies, we encourage governments to consider how the FIA Road Safety Index methodology can support regulatory compliance frameworks and strengthen road safety standards globally. We aim to build a shared culture in which road safety is recognised as a fundamental responsibility. I congratulate Honda on leading the way and becoming the first organisation to receive five stars.”

Willem Groenewald, FIA Secretary General for Automobile Mobility, Sustainability and Tourism, said, “The expansion of the FIA Road Safety Index to five stars marks an important step in our ambition to make road safety a measurable and accountable part of corporate decision-making. Organisations worldwide have a significant influence on road safety through their operations, employees, products, services and supply chains. With this expanded methodology, they can not only understand that impact more broadly, but set targets, measure progress, showcase in-depth commitment and continuously improve their performance. Honda becoming the first organisation to achieve the new five-star rating demonstrates the level of ambition we want the Index to inspire. We hope this milestone will encourage many more organisations across the public and private sectors to measure their road safety footprint and take concrete action to save lives.”

Mikihito Kojima, Assistant Vice-President and General Manager of Traffic Safety Promotion Operations, Honda Motor Co, said, “We are deeply honoured that Honda safety initiatives have received the 5-Star rating, the highest recognition in the FIA Road Safety Index. At Honda, our goal goes beyond delivering safer products. We look to the safety of each and every customer who uses our products, and everyone sharing the road around them. Through the advancement of our safety technologies, activities to promote safe driving and riding practices, and a clearer understanding of how traffic collisions occur so that we can keep improving, we work to reduce the number of traffic collisions themselves. The FIA Road Safety Index brings visibility to corporate road safety efforts, and has given us a clearer view of where we stand today and of what we need to address next. We see this recognition as an important milestone on the way to our challenging goal of achieving zero traffic collision fatalities involving Honda motorcycles and automobiles globally by 2050, and we will continue to take on that challenge. We also hope that the FIA Road Safety Index will encourage broader commitment to road safety among companies and organisations worldwide beyond individual companies and industries, helping to drive road safety forward across society.”

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