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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Automotive tier 1 suppliers FORVIA and Anand Group have established a new joint venture to manufacture seat frames and complete seats for the Indian automotive market.

The new entity, named Faurecia Anand Seating India, will be controlled by FORVIA with a 50 percent plus one share stake, while Gabriel India, Anand Group’s flagship listed firm, will hold 50 percent less one share.

The partnership aims to combine FORVIA’s seating technologies and engineering portfolio with Anand Group’s operational network and customer relationships with domestic automotive manufacturers.

The JV aims for a 10 percent market share in India over the next five years as part of its regional expansion strategy. The collaboration expands on an existing relationship between the two companies that began in 1991 in the clean mobility segment.

The joint venture will utilise localised manufacturing footprints to support supply chain, industrial and talent capabilities for supply contracts across Indian vehicle manufacturers.

Jaisal Singh, Vice-Chairman, Anand Group, said, "This partnership is a natural extension of Gabriel India’s transformation into a broader mobility solutions enterprise. As vehicle systems become more integrated and technology-intensive, the ability to participate across a wider spectrum of the automotive value chain assumes strategic importance. The venture strengthens our portfolio with a globally proven capability, while reinforcing our commitment to building scalable, technology-led businesses that create enduring value."

Anjali Singh, Executive Chairperson, Anand Group and Gabriel India, said, "At Anand, we have always believed that long-term relevance is built through thoughtful partnerships, technological excellence, and a deep understanding of customer needs. This venture strengthens our longstanding partnership with FORVIA, building on complementary strengths and a shared commitment to innovation. By bringing together FORVIA’s global expertise and Gabriel India’s strong market presence, it creates a platform that is both strategically significant and future-ready."

Martin Fischer, CEO, FORVIA, said, "When we unveiled our IGNITE strategy earlier this year, we highlighted India as a key growth driver for FORVIA. Following the award of our first complete-seat program a few months ago, today’s agreement marks another important milestone in our development in the country. Building on our long-standing relationship with Anand Group, the joint venture will help accelerate FORVIA Seating’s growth in India."

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Hinduja Tech, the mobility-focused engineering and R&D technology subsidiary of Ashok Leyland, has announced the appointment of Faiz Ahmad as Chief Executive Officer, effective 1 November 2026.

The appointment follows the retirement of current Chief Executive Officer Kumar Prabhas, who concludes nine years in the role on 31 October 2026.

Ahmad has been part of the Hinduja Group ecosystem for nearly two decades and currently serves as Chief Operating Officer and Head of Vehicle Engineering & Development. During his tenure with the company, he has overseen operational functions, capability building and vehicle development units. Prabhas and Ahmad will execute a transition process throughout October.

During his nine years leading Hinduja Tech, Prabhas managed the company's international expansion, service portfolio diversification and the acquisitions of engineering firms DSD and Tecosim.

Dheeraj G. Hinduja said, “I would like to express my sincere appreciation to Kumar Prabhas for his dedicated leadership and valuable contribution to Hinduja Tech over the past nine years. His vision, commitment, and leadership have been instrumental in shaping the company's growth journey and building a strong foundation for the future. We thank him for his invaluable service and wish him a joyful, healthy, and fulfilling retirement."

"Faiz has been an integral part of our journey and embodies the values, customer focus, and innovative spirit that define Hinduja Tech. His deep industry knowledge, strategic perspective, and proven leadership capabilities make him exceptionally well-positioned to lead the organization into its next phase of growth. We are confident that under his leadership, Hinduja Tech will continue to strengthen its market position, deepen customer relationships, and accelerate innovation across its global operations," added Hinduja.

Faiz Ahmad said, “I am honoured to be entrusted with the responsibility of leading Hinduja Tech at this exciting stage of its growth journey. We have a strong foundation, talented teams, trusted customer relationships, and significant opportunities ahead. I look forward to working closely with our employees, customers, and partners to build on our successes, drive innovation, and deliver sustainable value for all stakeholders.”

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ALTEN India, a global engineering and technology consulting group, has appointed Prabhakar Atla as its new Chief Executive Officer, effective 5 October 2026. He previously served as President and Chief Operating Officer at Cyient, succeeds Balaji Viswanathan as head of the company's Indian operations.

Atla brings three decades of industry experience to the role, having led global operations and business units across sectors including aerospace, communications, rail, energy and semiconductors. His previous assignments include roles in Europe, India, the United States, Japan, and Australia, as well as serving as President and Chief Financial Officer at Cyient prior to his appointment as Chief Operating Officer.

Pascal Amore, Group EVP, Head of APAC, ALTEN, said, "Prabhakar's depth of experience in engineering, IT and technology services, and his track record of leading large global organisations through transformation, make him the right leader for ALTEN next chapter in India. India is core to the ambitions of our 2030 strategic plan, and I am confident Prabhakar will strengthen our organisation, develop new capabilities and accelerate our growth across the country."

Prabhakar Atla said, "I am honoured to join ALTEN and lead its talented teams in India. ALTEN India has grown into a strategic capability hub for the Group, with deep engineering expertise and trusted client relationships. My ambition is clear: enable and empower India as the engine of ALTEN Group's transformation, powered by deep sector expertise, AI-led engineering and faster innovation for our clients."

The company currently employs more than 8,500 personnel across 13 centres in eight Indian cities. The unit provides engineering, digital transformation, semiconductor and artificial intelligence solutions to clients in the automotive, aerospace, defence, telecommunications, consumer technology, manufacturing, and life sciences sectors.

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AIC Pinnacle Entrepreneurship Forum and the National Automotive Test Tracks (NATRAX) have signed a memorandum of understanding to support startups in the automotive, electric vehicle and connected mobility sectors.

The agreement was executed at EKA's vehicle manufacturing facility in Chakan by Dr Avinash Thakur, CEO, AIC Pinnacle and Dr Manish Jaiswal, Director, NATRAX.

The collaboration combines AIC Pinnacle’s business incubation and mentoring programs with the testing and certification infrastructure at NATRAX. The partnership aims to assist startups in progressing from prototypes to validated commercial products. Immediate initiatives include organising a startup hackathon and granting select cohort members access to the NATRAX testing tracks near Pithampur, Madhya Pradesh.

The signing event included representatives from EKA Mobility, AIC Pinnacle and NATRAX, such as EKA Mobility Chief Product Officer Zoeb Altafhussain Karampurwala, Chief Engineers Kaustubh Vasant Joshi and Pankaj Shivrudrappa Munoli, and R&D Team Lead Swapnil Anil Tambe, alongside AIC Pinnacle Senior Manager Shadab Hussain and NATRAX Group Lead Tulika Mazumdar.

"The partnership with NATRAX opens an important bridge between startups and the automotive testing and validation ecosystem. Our objective is to help promising innovations move beyond the incubation stage and gain access to the technical, industry and testing support required to develop market-ready solutions," said Dr. Thakur.

Dr Manish Jaiswal said the partnership would create opportunities for startups and innovators to access relevant testing, validation and ecosystem capabilities. "Such partnerships can contribute to accelerating the development and adoption of emerging mobility technologies," he said.

Dr Sudhir Mehta, Founder and Chairman, Pinnacle Industries and Group Companies, said, "Electric mobility will remain a key focus area for AIC Pinnacle in the coming period. This MoU strengthens that vision by giving startups direct access to the industry, strategic partners, academic institutions and government agencies they need to scale."

The initiative will establish networks between early-stage companies, industrial firms, academic institutions, and government agencies across Maharashtra and Madhya Pradesh. AIC Pinnacle operates as a non-profit incubator supported by NITI Aayog's Atal Innovation Mission, while NATRAX operates testing and certification facilities in Central India.

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