Auto Part Makers Look Beyond Cars to Dodge Global Headwinds

Facing shifting trade dynamics, geopolitical tensions, and cooling demand especially in the US, top Indian auto component makers Samvardhana Motherson, Sona Comstar, and Bharat Forge are either getting into new growth areas or beefing up existing presence in alternative sectors.

- Ayaan Kartik

During management calls with analysts and investors in May after declaring their Q4 results, Sona Comstar said it is looking at railways, Motherson aerospace, and Bharat Forge defence and electronics to boost growth even as the core auto business faces challenges.

The new direction follows the March announcement by US President Donald Trump that all automobile-related imports into the US would attract a flat tariff of 25%. For these three companies, which have among the highest exposure to the US market among Indian auto component makers, that is likely to hit revenues and margins.

Sona Comstar's managing director and chief executive Vivek Vikram Singh said in an analyst call on 30 April that the developments in the US could impact 3% of its total revenue. "In our opinion, they (US tariffs) will adversely impact the demand for cars and light trucks," Singh said.

In FY25, Sona Comstar earned 41% of its ₹3,545 crore consolidated revenues, and Motherson 19% of ₹1.13 trillion, from the North American market, the bulk of it from the US. Bharat Forge generated 70% of its total exports from the Americas (both North and South America) in the same fiscal year.