Auto part suppliers may take detour from US mkt

With a two-tier tariff of 25 per cent and 50 per cent looming over the automotive (auto) components industry, Indian players are turning to new markets such as the European Union and doubling down on future-ready products.

- ANJALI SINGH

The duties, imposed by the Donald Trump administration, threaten to wipe out the industry's $6.6 billion export market to the US. The setback is severe: the US accounted for nearly 27 per cent of India's $22.9 billion auto component exports in 2024-25.

Ajinkya Firodia, vice-chairman and managing director of Kinetic Engineering, acknowledged the near-term hit but underlined the need for diversification. "To mitigate the impact of high US tariffs, we will look at alternative markets, primarily in Europe, where requirements are similar and exports are manageable. At the same time, we are focusing on strengthening our domestic business and diversifying into future-ready products such as electric vehicle (EV) components," he said.