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.

Travelling across highways and expressways has become more expensive in India. Effective from midnight of 31 March 2025, commuters have been shelling out INR 5-10 more on major highways and expressways.

However, commercial vehicles with more than seven axles have been the hardest hit, as their toll has risen by a whopping INR 590.

In sum total, the changed toll fee is part of a yearly exercise to revise rates as per Wholesale Price Index (WPI)-based inflation. On average, rates have gone up by 4-5 percent across the country. Some of the highways on which the toll hikes are visible include the Eastern Peripheral Expressway, Delhi-Jaipur Highway and Delhi-Meerut Expressway, among others. The toll rate from Ghaziabad to Meerut has risen from INR 70 to INR 75. The National Highway of India (NHAI) levies tolls across 855 plazas, out of which 675 are publicly funded and 180 are concessionaire-operated.

Jeeps and commercial cars are now being charged INR 85 per side, and the charges for their monthly passes have increased from INR 1225 to INR 1255. On the other hand, single-journey tolls for Light Motor Vehicles (LMVs) and minibuses on the Chhijarsi toll plaza on NH9 have increased from INR 275 to INR 580. 

As the news of a seven-seater C-segment SUV being tested by Nissan in India gathers speed (besides the news that Renault will launch the new Duster as the Bigster in the next few months), the Renault Group and Nissan have announced new strategic projects. 
The most important of these is the restructuring of the Indian Renault Nissan Alliance entity with Renault Group buying out the 51 percent stake of Nissan, making Renault Nissan Automotive India Private Ltd (RNAIPL) its fully owned subsidiary. 
Despite this change, Nissan will maintain its presence in India with a strong focus on enhancing market coverage. RNAIPL will continue to support Nissan’s production of models, including the New Nissan Magnite in India. 
With Nissan choosing Renault Group to develop and produce a derivative of Twingo that it has designed, the restructuring of the Indian business that was until now a well-honed alliance effort with almost equal-equal investment by both the auto makers, the Renault Group and Nissan have entered into a new alliance agreement that would increase the flexibility of each of the two regarding their cross-shareholdings. This would be done by setting the lock-up undertaking at 10 percent instead of the current 15 percent. 
Nissan would be released from its commitment to invest in Ampere while continuing the agreed product projects.
 Luca de Meo, CEO of Renault Group, commented on the significant development: “As a long-time partner of Nissan within the Alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan turnaround its performance as quickly as possible. Pragmatism and business-oriented mindset were at the core of our discussions to identify the most effective ways of supporting their recovery plan while developing value-creating business opportunities for Renault Group. This Framework Agreement, beneficial for both parties, is the proof of the agile and efficient mindset of the new Alliance. It also confirms the attractiveness of our products with Twingo as well as our ambition to grow our business on international markets. India is a key automotive market and Renault Group will put in place an efficient industrial footprint and ecosystem.”
 “Nissan is committed to preserving the value and benefits of our strategic partnership within the Alliance while implementing turnaround measures to enhance efficiencies. Our goal is to create a more agile and effective business model that allows us to respond quickly to changing market conditions and conserve cash for future investments. We remain committed to the Indian market, delivering vehicles tailored to local consumer needs while ensuring top-notch sales and service for our existing and future customers. India will remain a hub for our research and development, digital and other knowledge services. Our plans for new SUVs in the India market remain intact, and we will continue our vehicle exports to other markets under the “One Car, One World” business strategy for India," said Ivan Espinosa, President and CEO of Nissan. 
 

Rapido, India’s leading ridesharing platform and one of the country’s youngest unicorns, has expanded its Pink Mobility initiative nationwide to create sustainable earning opportunities for women, championing employment generation, financial independence and skill development. In this direction, the company has signed a memorandum of understanding (MoU) with Azad Foundation and Sakha Consulting Wings.

Through this partnership, Rapido is committed to creating job opportunities for women drivers through the platform, ensuring a fixed monthly earning opportunities up to INR 25,000 for female captains. It will also help trained women drivers with vehicle procurement, registrations, mentorship, safety training and awareness sessions. Further, it will collaborate with policymakers to address the systemic challenges faced by women drivers through joint initiatives with Azad Foundation and Sakha.

Rapido held an event at the India International Centre in New Delhi with the subject ‘EmpowHer: Driving Financial Inclusion and Empowerment’ to mark this milestone. Prominent speakers like Srinivas Rao, National Lead at Azad Foundation; Dr Arpita Mukherjee, Professor at ICRIER; Barsha Chakraborty from Breakthrough; Anjana from Sakha; Meenu Vadera, Founder of Azad Foundation; Sunaina Kumar, Senior Fellow at ORF and Executive Director at Think20 India Secretariat; Bornali Bhandari, Professor at NCAER; and Shweta Aprameya, Founder and CEO of ARTH and Co-Founder of HAPPY were among the programme's captivating panel discussions and thought-provoking fireside chats. Talks focused on important topics including establishing fair career paths, resolving safety concerns and improving financial literacy for women working in non-traditional fields.

Shravya Reddy, Chief of Staff, Rapido, said, “We are deeply grateful to the esteemed panellists and guests who joined us today, sharing invaluable insights on breaking barriers, advancing women’s empowerment in mobility and fostering financial independence. Empowering women is central to Rapido's mission, and the nationwide expansion of our Pink Mobility initiative reflects our commitment to creating a more inclusive mobility ecosystem. These discussions are critical to driving meaningful change for women in the workforce. We deeply appreciate the invaluable support from state governments, policymakers and our partners, who have enabled this growth. Above all, we are inspired by our incredible female captains whose resilience and dedication drive this initiative. Through our collaboration with Azad Foundation and Sakha, we are dedicated to offering women meaningful employment opportunities and equipping them with the resources they need to succeed. We look forward to expanding access to employment and financial independence for thousands of women across India."

Meenu Vadera, Founder, Azad Foundation and Sakha, said, "Gender equality and ensuring women are able to realise their human rights is the cornerstone for societal advancement. At Azad Foundation and Sakha, our mission is to enable women empower themselves, gain essential skills and earn sustainable livelihoods with dignity. Our partnership with Rapido reflects a shared commitment to creating an inclusive and equitable mobility sector. Together, we are proud to enable women to achieve financial independence and succeed in non-traditional roles, contributing to a more inclusive future."

Routematic, a leading corporate mobility solutions provider, has appointed Chidananda Murthy as Vice President – People and Culture with immediate effect.

Murthy has more than 20 years of experience in HR leadership positions with top international businesses. He oversaw the HR department for Walmart Global Sourcing in India, Bangladesh and Pakistan before joining Routematic. In this role, he oversaw company development, succession planning, talent retention programmes, talent evaluations and HR operations for the area. Additionally, he has successfully led workforce transformation, leadership development, post-M&A integrations and HR strategy while working with Nokia Networks, IBM, Oracle and Huawei. Murthy will oversee Routematic's people strategy, organisational culture and talent development in this capacity, promoting an inclusive and productive work environment. With a strong emphasis on long-term development and worker satisfaction, Murthy will be instrumental in propelling the business into its next stage of expansion.

Kavitha Ramachandragowda, Co-Founder & Executive Director, Routematic, said, "Chidananda's expertise in human capital management will be crucial as we scale our sustainable mobility solutions and expand our organisational footprint. His strategic leadership will not only strengthen our people-first culture but also ensure we continue to attract, retain and nurture top talent while fostering a culture of innovation, collaboration and inclusivity."

Murthy said, “Routematic is at a pivotal growth stage, and I’m excited to help shape its people strategy. We are committed to fostering an empowering and inclusive culture – one that attracts top talent, nurtures innovation and drives long-term success. As we work towards redefining corporate mobility, I look forward to contributing to Routematics’ growth, well-being and transformation."