Indian auto-parts firms gain as Western rivals struggle

MM Forgings, Uniparts and Nelcast have won new orders from North America and Europe

- Ayaan Kartik

Indian firms offer 20-30% cost advantage, helping them win global orders despite 25% US tariffs on auto parts imports.

(MINT)

Financial stress and capacity shortages among the West's auto component suppliers are opening the door for Indian manufacturers to win business from global automakers, even as tariffs raise the cost of exporting to the US.

During an analyst meet last week hosted by brokerage Emkay Global, management of listed auto ancillary firms such as MM Forgings, Uniparts India and Nelcast said they are securing new orders from automakers in North America and Europe as those manufacturers widen their supplier base and look to India for additional capacity.

Indian manufacturers retain a significant cost advantage, executives and analysts say, allowing them to compete for global orders despite tariff headwinds. Last March, the US raised tariffs on auto and auto parts imports from India to about 25%, from roughly 2%.