The India-US trade agreement is expected to support auto component exports from India through preferential tariff treatment and expanded market access. The joint statement indicates that India will receive a preferential tariff rate quota for automotive parts currently covered under US national security tariffs, enabling lower or zero-duty access for select products.
Certain auto components had earlier been subject to duties of up to 50%. The revised framework provides a structured pathway for Indian exporters to participate more actively in the US automotive market.
Vikrampati Singhania, President of the Automotive Component Manufacturers Association (ACMA), said the development reflects a clear intent to strengthen manufacturing linkages. “These measures will lead to enhanced export competitiveness, deepen technology collaboration, and reinforce India’s role as a trusted partner in resilient global automotive supply chains.”
Industry participants have also indicated expanded opportunities. “For Uno Minda, this opens up compelling opportunities to further scale our footprint, strengthen our supply chain agility and expand our contribution to the US market while proudly reinforcing India’s position as a world-class manufacturing hub,” said Ravi Mehra, Managing Director, Uno Minda.
Tenneco India noted that tariff reductions will support product positioning. “This will significantly enhance the cost competitiveness of our premium products like shock absorbers and exhaust systems in the US market, positioning us to grow our presence, scale volumes, and strengthen integration within the supply networks of American OEMs,” said Arvind Chandra, Director and CEO, Tenneco India.
Auto component exports to the United States stood at $6.2 billion in 2024-25 and reached $3.1 billion in the first half of the current financial year, according to ACMA.
Attribution:
This article is based on reporting from industry statements and data referenced by the Automotive Component Manufacturers Association (ACMA).
Leave a Reply