Auto parts makers hit hard; global ops may act as cushion

THE US ADMINISTRATION'S move to impose a steep 50% tariff on Indian auto components is set to hit exports hard.

- NITIN KUMAR

However, major leading component manufacturers may be better positioned to weather the impact, thanks to their expansive overseas operations — particularly in North America.

In total, the new tariff threatens nearly half of the $7 billion worth of annual auto component exports to the US, which remains India's largest export destination in the sector.

"The recent decision by the US to impose higher and additional tariffs on certain imports from India, including auto components, underscores the shifting landscape of global trade," said Shradha Suri Marwah, president of Automotive Component Manufacturers Association (Acma).