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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Global vehicle safety assessment organisation Euro NCAP has released its latest testing results under 2026 evaluation protocols, highlighting a growing industry trend toward reintroducing physical buttons and switches for core driving functions. The update comes as European safety testing increasingly penalises reliance on central touchscreen interfaces for primary controls.

Under Euro NCAP's 2026 Safe Driving protocols, primary vehicle controls – including direction indicators, windscreen wipers, hazard lights, horn and emergency call buttons – must be accessible via physical controls rather than buried within touchscreen menus.

In the latest assessments, the Audi Q7 achieved a 90 percent score for driving controls, including a 100 percent rating for primary driving tasks, while the Kia EV2 also received high marks for ergonomic physical switchgear. Both vehicles secured 5-star overall safety ratings.

Conversely, Chinese manufacturer XPENG scored 20 percent for primary driving controls on its X9 MPV due to touchscreen menu dependence, despite obtaining a 5-star overall rating supported by crash avoidance and post-crash safety performance. Comparative testing across 2026 models showed European manufacturers generally scoring higher for physical switchgear, with the BMW iX3 scoring 100 percent and the CUPRA Raval scoring 80 percent, compared to lower scores for the ZEEKR 7GT at 20 percent and the Leapmotor B05 at 0 percent.

Dr. Aled Williams, Programme Director at Euro NCAP, said, "Euro NCAP is continually monitoring market trends, and the move toward placing as many driving controls within a car’s touchscreen system is one that has concerned us just as much as it has annoyed consumers. It is clear in these results that the XPENG adheres to the mantra that everything must be included in the touchscreen, despite overwhelmingly negative feedback by European car buyers. We applaud Audi and Kia for taking a more common-sense approach. Our latest protocols reward the intelligent use of physical buttons and controls, as this can reduce driver distraction, and both Audi’s new Q7 and Kia’s EV2 do an excellent job of keeping safety simple. Other manufacturers, including XPENG, would do well to follow this strategy."

The latest round of evaluations also awarded 5-star safety ratings to the BYD SHARK pickup truck under 2025-adapted protocols and a 4-star rating to the Mazda 2 Hybrid, carried over from the platform's Toyota Yaris architecture.

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Stellantis India, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility have signed a definitive agreement expanding their long-standing partnership into vehicle technology and product architecture collaboration. The agreement builds on a Memorandum of Understanding signed in February 2026.

As per the terms, Tata Motors Passenger Vehicles will grant Stellantis access to its vehicle architectures and technology platforms. Stellantis will utilise its engineering resources in India to adapt these architectures for more than 50 international markets. Vehicles developed through the collaboration will be manufactured in India at Fiat India Automobiles, the 50:50 joint venture facility between Tata Motors and Stellantis located in Ranjangaon.

Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, said, "Our partnership with Stellantis has grown steadily over more than two decades, built on mutual trust and complementary strengths. This Agreement marks an important next step, extending our relationship into advanced vehicle technology and architecture, reflecting the strength and competitiveness of TMPV’s capabilities in these areas. We are delighted that Stellantis will leverage them to develop products for global markets. Together, we have an exciting opportunity to combine our respective strengths to create compelling vehicles engineered and made in India for customers in India and around the world."

Tianshu Xin, COO for Stellantis Asia-Pacific Region, said, "Partnerships are central to how Stellantis creates value across Asia-Pacific. By combining Tata Motors' strong capabilities in India with Stellantis' global product development and market reach, this Agreement will help us develop competitive vehicles in India and expand our export potential across international markets. It also reinforces India's growing role as a strategic manufacturing and development hub for Stellantis."

The agreement reinforces India's positioning as an engineering, product development and manufacturing export hub for both multi-national automotive corporations, integrating local supply chain scale with international market distribution networks.

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TIP Group has been named one of the Fortune 100 Best Companies to Work For in Europe. The list, produced by Great Place to Work, draws on employee feedback gathered through the Trust Index survey, so it mirrors workers’ own experiences on the job rather than external assessments.

This honour represents the newest step in TIP’s broader Great Place to Work journey, which has brought employer recognition across Europe for several years. The company’s workplace culture rests on three core values: team spirit, integrity and reliability and people. These principles guide how colleagues collaborate, serve customers and fuel success across the region.

TIP earned Great Place to Work certification in all nine countries surveyed in 2023 and has since extended it to 11 European nations. TIP France was recognised among France’s Best Workplaces for companies with 250 to 1,000 employees in March 2026, while TIP UK was named a Best Workplace in Manufacturing, Production & Transportation in September 2026. Rooted in employee experience, these honours reflect a culture of collaboration, trust and mutual support. As TIP expands across Europe, it stays committed to investing in its people and fostering an environment where careers grow and success is shared.

Arjen Kraaij, CEO, TIP Group, said, “This recognition reflects our people and the culture they create every day. It is especially meaningful because it is based on the experiences and feedback of our employees. Their teamwork, dedication and willingness to support one another are what make TIP special. I would like to thank all colleagues across Europe for helping build the company we are today.”

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Good Business Lab brought together senior automotive executives, industry actors and shopfloor workers at a leadership conference in New Delhi to discuss strategies for increasing female workforce participation across India's automotive manufacturing sector.

The event followed the organisation's September research report, which revealed that women account for 8.7 percent of the combined original equipment manufacturer and component manufacturing workforce across the country.

The conference addressed findings from a three-year study by Good Business Lab spanning over 55 automotive firms, 400 stakeholders and 1,900 individuals. Discussions focused on practical shopfloor interventions to improve recruitment and retention, including talent supply chains, night-shift operational frameworks, last-mile transportation solutions and childcare infrastructure.

Industry panels examined career progression pathways, performance metrics for middle management retention, and workplace safety conditions required to support long-term employment.

The event featured three panel sessions covering business metrics, worker perspectives, and sector-wide operational scalability. Executives participating in the discussions included Suman Mishra, Chief Executive Officer and Managing Director of Mahindra Last Mile Mobility; Viveka Bhandari, Chief Operating Officer of Padmini VNA Mechatronics; Sunil Arora, Managing Director of Abilities India Pistons & Rings; Satyaprakash Patil, Chief Human Resources Officer of Honda Motorcycle & Scooter India; and Vinkesh Gulati, Chairperson of the Automotive Skills Development Council.

A panel of female shopfloor associates from Abilities India Pistons & Rings, Asahi India Glass, Honda Motorcycle & Scooter India and Sansera Engineering detailed their career trajectories and operational experiences in vehicle assembly and component production.

Nirmal Deshpande, Managing Director of Good Business Lab, said, “The evidence increasingly mirrors what we are hearing from industry: women’s participation is no longer just an inclusion imperative, but a business necessity. Several leading firms are already showing what is possible; the challenge now is scale. We brought business leaders, women workers and the wider ecosystem together to chart the path ahead. The opportunity is clear: now we need to turn what works into action across the sector.”

Good Business Lab plans to collaborate with automotive manufacturers, philanthropic organisations and industry bodies to pilot shopfloor solutions and co-design workforce frameworks across the manufacturing sector.

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