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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Indian automotive retail sales saw their second-best-ever performance last month, with a total of 3.17 million vehicles sold, up 25.05 percent over the previous month, but a 23.8 percent YoY decline, albeit from a high base a year ago.

As per the latest data released by the Federation of Automobile Dealers Associations (FADA), the shift in the festive calendar accounted for the year-on-year drop, as Navratri fell in October while Dhanteras and Diwali shifted into November.

The data pointed out that two-wheeler retail sales reached 2.32 million units, reflecting a 29.67 percent MoM increase and a 28.35 percent YoY decline. Passenger vehicle retails totalled 507,768 units, rising 18.86 percent sequentially while dropping 14.23 percent compared to the previous year. Inventory levels for passenger vehicles remained between 43 and 45 days.

Commercial vehicles recorded 115,140 units, up 2.29 percent YoY and 11.19 per cent MoM, driven by a 28.95 percent increase in heavy commercial vehicles and a 21.16 percent rise in medium commercial vehicles.

Three-wheeler registrations grew 3.97 percent YoY to 141,420 units, with electric variants accounting for approximately 63 percent of the total. Tractor sales rose 3.10 percent to 79,285 units, while wheeled construction equipment recorded a 22.07 percent YoY increase to 7,434 units. Overall electric vehicle registrations reached 355,000 units, representing an electric mobility penetration rate of 11.5 per cent.

Sai Giridhar, President, FADA, said, "October is India’s largest retail month of the year, and this year it must be read with the calendar firmly in mind. The YoY decline is almost entirely optical. Last October was an exceptional month that carried both Navratri and Deepawali together, over and above the pent-up demand released after the GST 2.0 rate cuts of 22nd September 2025; this year Navratri fell in October while Dhanteras and Diwali move into November."

"What the year-on-year numbers conceal is where the decline sits. The sharpest falls are precisely in the most Deepawali-dependent pockets – rural two-wheelers, down 33.97 percent against urban’s 20.77 percent, and the Northern markets — the very segments and regions our dealers there now expect to lead November. To our mind this is the signature of demand deferred by the festival calendar, not demand destroyed: the rural, two-wheeler-led buying that powered last October is set to land in this year’s November print." added Giridhar.

"The clearest bright spot was electrification. EV retails touched an all-time high of about 355,000 units, up 44.88 percent YoY, lifting overall EV penetration to roughly 11.5 percent from about 6 percent a year ago – a best-ever October for electric two-wheelers, three-wheelers, passenger vehicles and commercial vehicles alike. Tellingly, demand ran ahead of supply this month: with petrol and diesel prices continuing to remain elevated, electric vehicle driving ranges now materially improved and EV prices increasingly at par with comparable petrol and diesel models, buyer pull strengthened to the point where availability – not demand – became the binding constraint," concluded Giridhar.

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European tier 1 supplier Marelli has confirmed the appointment of Laurent Favre as Chief Executive Officer with immediate effect, succeeding Frederick ‘Fritz’ Henderson, who concludes his tenure as Interim Chief Executive Officer.

Favre takes over leadership as the company prepares to complete its Chapter 11 restructuring process.

Separately, the Ad Hoc Group of Lenders to Marelli announced plans to appoint Bram Schot as Chair of the Board of Marelli upon emergence from Chapter 11. Previously Chief Executive Officer of Audi, he has held senior leadership roles at Mercedes-Benz, Volkswagen Group and holds advisory and board roles across Shell, Richemont, Cognizant and Signify.

On the other hand, Favre brings over two decades of automotive industry experience, having previously served in executive positions at ThyssenKrupp, ZF, Benteler and as CEO of Plastic Omnium (later renamed OPmobility) from 2020 to 2025.

Dinesh Paliwal, Executive Chairman, Marelli, said, "Fritz stepped into the role at a demanding moment and has led Marelli with judgement, clarity and commitment. On behalf of the Board, we thank him for everything he has done for the company, its customers and its people. Laurent brings deep knowledge of the global automotive industry and a strong record of leading complex international businesses. He understands the operational discipline needed to deliver for customers and the opportunities ahead for Marelli’s products and technologies.”

Laurent Favre said, "I am honoured to lead Marelli at this pivotal point in its history. I want to thank Fritz for his leadership and for the progress he and the Marelli team have made during a challenging period. Our immediate priority is to complete the work required for a successful emergence from Chapter 11. Emergence is a critical milestone, but the turnaround must continue beyond it. We will focus on restoring Marelli’s financial strength, improving performance across the business and strengthening customer confidence through consistent delivery."

"Beyond emergence, our ambition is to build a financially stronger, more competitive Marelli, combining operational excellence with focused innovation and profitable growth. We have talented people, strong technologies and longstanding customer relationships. I look forward to working with colleagues across Marelli to turn those strengths into lasting results and build a business our people are proud to be part of," added Favre.

Fritz Henderson said, "It has been a privilege to lead Marelli during this important period. I am proud of the progress our colleagues have made and grateful for their commitment to the business and its customers. Laurent brings extensive automotive experience and a clear understanding of what it takes to succeed in this industry. I wish him and the entire Marelli team every success as they take the company forward."

Bram Schot said, "Marelli has the talent, technology and customer relationships to succeed. I look forward to supporting Laurent and the team when I will take up the role as Chair following emergence from Chapter 11. Our long-term focus is clear: deliver on our commitments, strengthen customer partnerships and build a stronger, more competitive and sustainable Marelli."

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Toyota Motor Corporation (TMC) has announced a major organisational restructuring, including the creation of a dedicated India & Middle East Region, as part of its strategy to strengthen regional management and accelerate its transformation into a mobility company. The changes will take effect from 1 January 2027.

Under the new structure, Toyota will split its existing India, Middle East, East Asia & Oceania Region into two separate entities – the India & Middle East Region and the East Asia & Oceania Region. The move is aimed at enabling closer engagement with individual markets, faster decision-making and business strategies better aligned with regional growth opportunities.

Masakazu Yoshimura will continue to lead the India & Middle East Region as its Chief Executive Officer, having previously headed the combined regional operations. The newly established region will focus on strengthening its business foundation for future growth, including the launch of a new plant in India and improved coordination of businesses and functions across the region.

The restructuring reflects Toyota's emphasis on regional autonomy, with market leaders expected to make faster decisions based on local customer requirements, operating conditions and business challenges. The company said the approach would strengthen its competitiveness while advancing its transition into a mobility company.

Takanori Azuma, currently associated with Toyota's accounting and regional operations, will head the newly created East Asia & Oceania Region as CEO. The new regional structure will allow both entities to focus more closely on their respective markets and manufacturing and sales operations.

Robotics Emerges As A New Business Priority

Among the significant organisational changes is the establishment of Toyota Robotics as a company-wide organisation under direct corporate oversight. The initiative builds on Toyota's manufacturing and engineering capabilities and positions robotics as a key pillar of its future business.

Takefumi Shiga, Operating Officer and Chief Production Officer, will also head the new organisation. Toyota plans to consolidate robotics-related expertise, personnel and functions across the company to accelerate the practical application, commercialisation and deployment of robots in manufacturing and other areas.

The company said its approach would focus on developing robots as partners that complement human capabilities rather than replace jobs.

Furthermore, Toyota will also establish a Toyota Philosophy and Education Group, headed by Chairman Akio Toyoda. The new group will focus on developing future leaders and passing on Toyota's manufacturing philosophy, technical skills and organisational values through practical, hands-on learning.

In another structural change, the Carbon Neutral Engineering Development Center will be dissolved, with its functions integrated into the Powertrain Company. The consolidation is intended to strengthen the connection between technology development and product implementation, particularly in hybrid systems, while supporting Toyota's carbon neutrality ambitions.

The Frontier Research Center will also be abolished, with its functions transferred to the Advanced R&D and Engineering Company and Software Development Center to bring future technology research closer to product development and commercialisation.

Toyota will additionally reorganise its External & Public Affairs Group by integrating selected public relations and investor relations functions to strengthen corporate communications and technology messaging across Toyota, Lexus and GAZOO Racing.

Leadership Changes Across Global Markets

The restructuring also involves changes to Toyota's regional leadership. Mark Templin will become CEO of the North America Region, Sukenaga Ota will head the China Region, while Masando Hashimoto will take charge of the Asia Region. Motonobu Kawamura has been appointed President of Business Planning & Operation.

Several existing regional leaders, including Tetsuo Ogawa, Tatsuro Ueda and Masahiko Maeda, will move into Senior Fellow positions.

The changes underline Toyota's wider organisational shift towards decentralised regional management, closer integration of engineering and business development, and greater emphasis on people and technology as it pursues its transformation into a mobility company.

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Axis Bank has unveiled a suite of festive offers spanning retail lending, business banking and credit card services. The initiatives encompass home, personal, auto, two-wheeler, commercial vehicle, construction equipment and education loans, alongside working capital solutions and merchant discounts.

Auto loan provisions include 30-minute instant disbursement, a 50 percent reduction in processing fees, a 10 basis points interest rate discount on select electric vehicle models, financing of up to 100 percent of on-road prices, loan tenures of up to eight years and a waiver of foreclosure charges after 24 months.

Two-wheeler financing includes rates starting from 10.75 percent for premium motorcycles and a 0.5 percent rate discount for electric models. Commercial vehicle and construction equipment loans carry a standardised processing fee of INR 5,999.

Munish Sharda, Executive Director, Axis Bank, said, "Festive spending is increasingly shaped by considered choices, whether it is buying a home, upgrading a vehicle, meeting personal needs or investing in a business. At Axis Bank, our focus is to give customers flexibility and value to act on these plans with confidence. Our festive propositions bring together competitive financing solutions across retail and business banking, helping customers make the most of opportunities that matter to them."

Arnika Dixit, Group Head of Cards, Payments and Wealth Management, Axis Bank, said, "Customers increasingly look for their cards to deliver value that is relevant to how and where they spend. During the festive period, as spending extends across different needs and occasions, relevance, choice and flexibility become even more important. Our focus is to make festive and planned purchases more rewarding, while continuing to strengthen our cards proposition around evolving customer needs. Through our wide range of festive offers, we are enabling customers to get more from their Axis Bank Credit Cards and make their spends work harder for them."

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