US President Donald Trump has imposed a 25 percent tariff on overseas automobile imports, a move expected to affect several Indian companies, including Tata Motors, Eicher Motors, Sona BLW, and Samvardhana Motherson.
These firms supply auto components to countries such as Europe, Japan, South Korea, and China, which then export vehicles to the United States, according to a report by MoneyControl.
While Tata Motors does not directly export to the US, its subsidiary Jaguar Land Rover (JLR) has a significant presence in the American market. JLR’s FY24 annual report revealed that the US accounted for 22 percent of its global sales. In FY24, the company sold nearly 400,000 vehicles worldwide, with the US being one of its top-performing markets. The vehicles JLR sells in the US are primarily manufactured in the UK and other international plants, which will now face the 25 percent tariff.
Eicher Motors, the parent company of Royal Enfield, could also be impacted, given that the US is a key market for its 650cc motorcycle models.
Samvardhana Motherson International Ltd, a major Indian auto component manufacturer, has a strong presence in both Europe and the US. The company supplies parts to leading American automakers such as Tesla and Ford. However, with established manufacturing operations in the US and Europe, Samvardhana Motherson is somewhat insulated from the effects of the new tariffs, unlike companies that rely entirely on exports.
Sona Comstar, which produces automotive components like differential gears and starter motors, derives about 66 percent of its revenue from the US and European markets. To mitigate risks, the company has been diversifying its export base by expanding into China, Japan, and South Korea, aiming for these Eastern markets to contribute over half of its revenue within the next five years.
Other major Indian component manufacturers with notable export exposure include Bharat Forge, Sansera Engineering, Suprajit Engineering, and Balkrishna Industries.
In the financial year 2024, India exported auto components worth $21.2 billion, contributing to the global auto component industry, valued at $1.2 trillion. Shipments to the US and Europe, the world’s largest auto part importers, accounted for approximately 4.5 percent of total global trade.
