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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Toyota Kirloskar Motor (TKM), one of the leading passenger vehicle manufacturers, has announced that its participants secured 9 medals at the IndiaSkills National Competition 2025-26.

The cohort achieved 5 Gold, 3 Silver and 1 Bronze medal across seven vocational categories. The competition serves as the primary platform for vocational excellence in India, with participants progressing through district, state and regional levels before reaching the national finals held in Delhi, Bengaluru and Chennai.

In the Mechatronics category, Deepu M S and Jayanth K won gold, while Ganesh P B and Punith Kumar received silver. Shashank S and Abhishek S S secured gold in Robotic System Integration, followed by Chirag G and Vinay M H with silver. In Additive Manufacturing, Pavan B S achieved gold and Harshith K B took silver. Individual gold medals were also awarded to Tejas B S for Auto Body Repair and Punith P for Mechanical Engineering CAD, while Praveen Y H earned a bronze medal in Welding.

The winners will now enter selection rounds for the WorldSkills Competition 2026, which is scheduled to take place in Shanghai, China, from 22 to 27 September. WorldSkills involves young professionals from over 60 countries competing in more than 65 technical skills. Toyota Kirloskar Motors’ participation in these events is part of a broader strategy to train technicians through advanced infrastructure and curricula aligned with international manufacturing standards.

G Shankara, Chief Strategy Officer, Toyota Kirloskar Motor, said, “At Toyota, we believe manufacturing excellence begins with nurturing exceptional talent. The remarkable performance of TKM participants at these prestigious events reflects their ability to excel across diverse skill categories and compete at the highest level. Their achievements embody the spirit of the Skill India Mission – empowering youth, nurturing creativity and fostering innovation. With such milestones, TKM continues to set new benchmarks in skill development and plays a pivotal role in shaping India’s growing talent landscape”

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Cars24 has announced that former Indian cricket captain MS Dhoni has joined Crashfree India, a national road safety initiative, as its Goodwill Ambassador.

The partnership aims to address the high rate of traffic fatalities in India by shifting public focus towards driver accountability and discipline. India currently records the highest number of road deaths globally, with 180,000 fatalities reported in 2024.

Despite possessing approximately 1 percent of the world's vehicles, the country accounts for 11 percent of global road deaths.

The initiative highlights a demographic crisis, noting that 66 percent of those killed in 2024 were aged between 18 and 34. Data indicates that seven in ten fatalities were linked to overspeeding. Through this collaboration, Cars24 seeks to move the conversation beyond annual statistics and integrate safety into the daily mobility habits of Indian drivers.

The programme focuses on behavioural change, suggesting that improved judgment and patience on the road can prevent the majority of accidents.

MS Dhoni, said, “I have spent a big part of my life around cars, bikes, and roads. When you love driving and riding, you also learn to respect them. You understand that control matters, judgment matters, and patience matters. A vehicle gives you freedom, but it also gives you responsibility. On our roads, too many people still see safety as a rule to follow only when someone is watching. That mindset has cost us far too much. We already know what is going wrong. We know how many lives are being lost. We know the habits that put people in danger every day. What we need now is not more excuses. We need more responsibility, more discipline, and more respect for life. Roads may be beautiful, but they come with real risks. As much as we love them, they can be dangerous. We have the data. We know what the problem is. We know what needs to change. The only thing missing is the will to make it a priority. This isn’t something I was asked to do. This is something I decided to do.”

Vikram Chopra, Founder and CEO, Cars24, sad, “Some missions need encouragement. This one needs scrutiny. Crashfree India cannot be built by people who only know how to say the right things. It needs someone who sets a harder standard: someone strict, deeply observant, unwilling to indulge comfortable language and clear enough to call out the truth without softening it. Dhoni is exactly that. He does not mince words and that is one of the most valuable things about him. His understanding of Indian roads is grounded in lived experience rather than theory alone. Years of navigating them have given him insights into driver behaviour, road conditions and the split-second decisions that matter most. Every meeting with him has been inspiring, not in a superficial way, but in a way that leaves you sharper, more serious and less satisfied with easy answers. Dhoni holds us to a higher standard and his involvement challenges us to push this mission further. That changes the seriousness of the work. And that is exactly what this mission needs.”

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The UK government is securing 4,200 jobs following an investment of more than GBP 700 million into the advanced manufacturing sector.

Business Secretary Peter Kyle announced the measures during a visit to Agratas in Somerset, where a GBP 380 million grant was confirmed to support the construction of a gigafactory. The facility, built using British steel, is projected to generate GBP 43 billion in economic growth over 25 years and will include a training unit to provide 300 apprenticeships.

Additional funding includes GBP 47 million for the Battery Innovation Programme to support research and development projects and GBP 190 million for the automotive industry. Of this, GBP 90 million in DRIVE35 funding has been awarded to firms including Nissan and Jaguar Land Rover for prototype development, while GBP 100 million is allocated to suppliers in the North East and West Midlands to assist in the transition to electric vehicle manufacturing.

The UK government is also providing GBP 115.44 million through the Made Smarter programmes to help small and medium-sized enterprises adopt digital technologies such as robotics and artificial intelligence. Furthermore, a GBP 182 million engineering skills package has been implemented to train the next generation of technicians, alongside GBP 1.4 million for autonomous freight and passenger service trials in UK ports.

Peter Kyle, Business Secretary, UK Government, said, “This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country - helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets. In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond. That is what sets us apart from the rest, and will help ensure advanced manufacturing remains a thriving sector in the UK for decades to come.”

Earl Wiggins, Vice-President of Manufacturing Operations, UK for Agratas, said, “We welcome the UK Government’s investment as we build a battery manufacturing facility that will play a vital role in delivering net zero and strengthening the UK’s position as a global leader in battery manufacturing. This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, JLR (Jaguar Land Rover). Over the next year we will have over 2,200 people working on the site, and that growth will continue over the coming years.”

Julian Hetherington, Automotive Transformation Director at the APC, said, “This globally significant investment by Agratas reinforces the UK’s accelerating position in pursuit of road transport decarbonisation through the production of vital high-performance batteries for electrified vehicles. I’m delighted that the ATF has been able to support Agratas in their investment in new facilities, creating secure and highly skilled jobs in this area and across the supply chain.”

Mike Hawes, Chief Executive, Society of Motor Manufacturers and Traders (SMMT), said, “Recent global events have highlighted the need for resilient supply chains, making this new investment in the sector both timely and important. The UK has a highly skilled and innovative automotive industry, but long‑term competitiveness depends on a policy framework that encourages investment. The modern Industrial Strategy provides that forward‑looking support, and today’s announcement demonstrates strong government backing for one of the UK’s most vital industries.”

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Hyderabad-headquartered electric vehicle company Olectra Greentech has launched a new brand identity and tagline, ‘Transforming Everyday’. The update marks the company’s transition from a specialist bus manufacturer to an organisation providing integrated mobility and energy solutions.

The brand repositioning is built upon three operational pillars intended to guide product development and market engagement:

• Pragmatic Futurism: Developing platforms for real-world conditions.
• Accessible Innovation: Ensuring technology remains scalable and usable.
• Trusted Guide: Establishing the company as a partner within the electric vehicle (EV) ecosystem.

The mission statement accompanying the refresh focuses on delivering innovation and execution excellence to create value for stakeholders in the mobility and energy sectors.

The updated visual language reinterprets existing company elements – the Olectra Prism – a central triangle representing structural integrity and direction. The Olectra Universe – a surrounding circle symbolising the ecosystem of stakeholders, infrastructure and cities.

Olectra currently operates with a portfolio that has expanded to include electric trucks and tippers alongside its established bus manufacturing division. The company maintains a manufacturing pipeline primarily serving government sectors.

Mahesh Babu, Managing Director, Olectra Greentech, said, “Olectra’s new brand identity is not just a visual change – it represents our ambition, mindset and the direction we are heading. It ensures that our brand, organisation and long-term strategy are aligned. As we transform from a pioneering electric bus manufacturer to a future-ready, innovation-led organisation delivering integrated mobility and energy solutions, this new identity reflects our core values and our commitment to ‘Transforming Everyday’ across the mobility and energy ecosystem.”

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