Auto component makers bank on localisation, diversification amid tariff woes

As the global trade landscape faces potential shifts with evolving tariff policies, Indian auto component manufacturers are proactively strategising to mitigate any adverse impact.

- ANJALI SINGH

From increased localisation to strategic market diversification, industry leaders are recalibrating their operations to maintain resilience in an uncertain global trade environment.

Leading players like Kinetic Engineering and Samvardhana Motherson International (SAMIL) are laying strong emphasis on localisation, long-term partnerships, and a cautious-yet-opportunistic outlook on market diversification.

Ajinkya Firodia, vice-chairman and managing director of Kinetic Engineering, said the company had long embraced localisation as a core philosophy, with over 97 per cent of its components manufactured domestically.

"Imports are limited only to highly specialised parts that are not currently available in India. As a result, the impact of potential import tariff changes on our operations is minimal," Firodia noted.

He added that Kinetic is working closely with its global OEM customers to assess potential impacts and build long-term solutions. "Auto programmes typically span seven years, involving extensive prototyping, feasibility studies, validation, and testing. This stable structure allows us to plan ahead and mitigate risks effectively," he said.

Industry players also highlighted that market diversification is integral to the industry's strategy.