After terming India’s import duty barriers high for some time, US President Donald Trump has expressed that 2 April 2025 will be remembered as the day the American industry was reborn as his government announced a broad new tariff policy that imposes at least a 10 percent duty on nearly all imports from certain countries. In the case of India, the policy speaks of 26 percent ‘discounted' reciprocal tariffs. The tariff on China, on the other hand, is 34 percent. 

Aimed at protecting American farmers and ranchers, according to Trump, the broad-based tariff policy is also being termed as ‘national emergency’ driven in view of the ongoing trade deficits, which hit a record USD 1.2 trillion in 2024.

The German auto industry has reacted to the US policy by stating that it 'will only create losers'. While the Asian stock markets have shrunk in response to the announcement, the Indian Ministry of Commerce is analysing the impact of the 26 percent ‘discounted’ tariff announcement. 
Mentioning in its statement that it understands the intent of the US administration to boost domestic manufacturing and address trade imbalances, the Indian auto components apex body ACMA (Automotive Component Manufacturers Association of India) has said that autos and auto parts as well as steel and aluminium articles are already subject to Section 232 tariffs at 25 percent announced earlier by the US President’s order on 26 March 2025. A detailed list of auto components that will be subject to 25 percent import tariff is awaited, it mentioned.

Shraddha Suri Marwah, President, ACMA and CMD, Subros Ltd, averred, “ACMA remains hopeful that the ongoing bilateral negotiations between the Indian and U.S. governments will lead to a balanced resolution that benefits both economies. We believe that the strong trade relationship between India and the United States, especially in the auto components sector, will encourage continued dialogue to mitigate the impacts of these measures. ACMA is committed to engaging with all stakeholders to ensure the long-term interests of the Indian auto component industry.”

Saurabh Agarwal, Partner and Automotive Tax Leader, EY India, observed, "With US automotive tariffs rising, India's electric vehicle sector has a prime opportunity to capture a larger share of the US market, especially in the budget car segment.” He drew attention to the fact that China's 2023 auto and component exports to the US stood at US$17.99 billion whereas India's were only US$2.1 billion in 2024, highlighting the potential for growth. “To accelerate this, the government should enhance the PLI scheme by including more auto components, opening it to new players, and extending it by two years,” he added. 

Mrunmayee Jogalekar, Auto and FMCG Research Analyst, Asit C Mehta Investment Interrmediates Ltd, expressed, “Certain sectors such as auto and auto ancillary, which are already subject to a separate 25 percent tariff announced in March are exempt to the levy of reciprocal tariffs. This means no additional tariffs will be imposed on this sector.”
Stating that other exempted segments include copper, pharmaceuticals, semiconductors, critical minerals and energy products, she informed,

“Since import duties apply to all trading partners, the extent of impact will vary across sectors and countries based on competitive advantages.” “For the Indian auto component industry, which derives around 30 percent of its revenue from exports, with 30 percent of that coming from the US, this could result in a potential hit on sales or profit margins,” she added. 

In FY2024, ACMA reported that India exported USS$ 6.79 billion worth of auto components to the US. It imported only USS 1.4 billion, resulting in a substantial trade surplus in India's favour. 

Against the backdrop of the broader tariff policy that speaks of a 26 percent duty of Indian exports to US, the discussion between Indian and the US regarding the bilateral trade agreement will assume importance as well as urgency. For US automotive companies to find their way to the Indian market despite their near cult status – the likes of Harley Davidson and Tesla – will only mean facing a competition that is stiffer than expected and a customer mindset that is far different from how it is in the US. 

Srikumar Krishnamurthy, Senior Vice-President & Co-Group Head, Corporate Ratings, ICRA, said, "The US Government has imposed a 25 percent tariff on passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and light trucks (collectively referred to as automobiles), which come into effect from 3 April  2025. As the PV exports from India to the USA represent less than 1 percent of the total PV exports, the tariff imposition of the tariff does not have any material impact on the Automotive OEMs. The scenario is however different for auto components. On 12 March 2025, a 25 percent tariff was imposed on all aluminium and steel components being imported into the US. Subsequent to this, on 26 March 2025, a 25 percent tariff was imposed on other key auto parts as well (including engines, transmissions, powertrain components and key electrical parts except those under USMCA), with processes to expand tariffs on additional parts, if necessary. The effective date is pending but is expected to be no later than 3 May 2025. Auto components have not featured in the latest set of additional tariff announcements that has been made on 2 April 2025. India’s auto components exports accounted for around 29 percent of industry revenues in FY2024. Of this, about 27 percent went to the US. While the situation is evolving, the recent tariff related development and the consequent inflationary pressures and slowdown in demand in the US could have a negative impact on revenue and earnings for component exporters (in the affected product categories) over the next few months. Nevertheless, with higher tariffs being levied on other competing nations, this could also create long-term opportunities for the exporters. Exporters dependent on the US are also trying to diversify their revenue base across other geographies (including Asia). Measures to improve value addition, diversification into non-auto segments and cost-optimisation strategies are also being worked upon to reduce the potential impact on margins.

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Pluto Mobility, a Delhi-based electric mobility startup focused on last-mile logistics, has just closed a seed funding round at USD 2 million. The investment was steered by Version One Ventures, with Grad Capital also contributing. Notably, the round drew interest from founders and senior figures at companies like Delhivery, OfBusiness, Pixxel and Boom Supersonic, signalling strong vote of confidence from within the logistics and tech ecosystems.

The startup was launched by Akshat Bhatia and Himanshu Panda with a specific mission: to design electric vehicles from the ground up for the rigors of Indian urban logistics. Rather than adapting existing two-wheelers, they are building something purpose-built. The funds will go towards sharpening their engineering focus, growing their team and setting up pilot runs in key city markets.

What sets Pluto apart is its vehicle design. It is roughly the size of a scooter but fully enclosed, offering protection against rain and heat. More importantly, it can accommodate twice the number of parcels per trip compared to a standard two-wheeler. That efficiency gain is not accidental. The founders have rethought everything – from chassis layout to cargo space – based on how delivery agents actually work. The result is a vehicle that boosts throughput without asking operators to compromise on safety or manoeuvrability.

This matters because most delivery fleets today still run on vehicles built for personal commute. They are not equipped for the stop-start, high-volume nature of e-commerce or quick-commerce deliveries. Operators often end up overloading bikes or switching to bulkier vehicles that cannot navigate narrow lanes. Pluto aims to fill that gap with a solution that is compact, durable and weather-resistant.

Pilot deployments are scheduled to begin later this year, with a focus on quick-commerce and e-commerce players looking for smarter ways to move goods through crowded cities.

Akshat Bhatia, CEO, Pluto Mobility, said, “India’s last-mile challenge isn’t speed, incentives or apps. It’s that delivery operations are built on vehicles never designed for delivery workloads. That mismatch caps how much can be moved per trip, increases failures at scale and quietly affects delivery economics.”

Boris Wertz, Founding Partner, Version One Ventures, said, “Pluto Mobility is taking a fundamentally different approach to last-mile delivery by designing vehicles specifically for throughput and operational reliability.”

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Andreas Mindt, Head of Design for the Volkswagen brand, has been appointed to lead Group Design for the Volkswagen Group, effective 1 March 2026. He succeeds Michael Mauer, who is departing as part of a transition.

He will hold this role alongside his current position at the Volkswagen brand. His appointment follows Mauer’s previous handover of responsibilities at Porsche to a successor.

Andreas Mindt joined the Volkswagen Group in 1996. His career includes work on the first-generation Tiguan and the Golf 7. Between 2014 and 2021, he led exterior design at Audi, overseeing models from the A1 to the e-tron GT. He later served as Director of Bentley Design, where he developed the design language for the Bentley Batur, before becoming Head of Design for Volkswagen Passenger Cars in 2023.

Michael Mauer joined the Group in 2004 as Head of Design at Porsche. During his tenure, he oversaw the Cayenne revision, the Panamera, and the 918 Spyder. He has served as Head of Group Design since January 2023, focused on establishing brand identities across the portfolio.

The role of Group Design is to differentiate the various brands within the Volkswagen Group by defining their specific identities. The strategy focuses on making each brand recognisable while ensuring products meet regional market requirements and customer expectations.

Oliver Blume, CEO, Volkswagen Group, said, “I would like to warmly thank Michael Mauer for his outstanding work and for the close and collaborative working relationship over the years. He shaped an era at Porsche. As Head of Group Design he also established a design philosophy across all brands that provides orientation and ensures recognition – with clearly defined brand and product identities. His work has shaped the style of our brands and will remain visible in the future.”

“I am looking forward to working more closely with Andy Mindt. With his track record at the Volkswagen brand and his expertise, he has made a significant impact in a short time and played a key role in ensuring that our cars are clearly recognisable as genuine Volkswagen models again,” added Blume.

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The Society of Indian Automobile Manufacturers (SIAM) organised the 4th International Conference on Sustainable Circularity today at the India Habitat Centre. The event, part of SIAM Sustainable Mobility Week 2026, focused on the transition to an automotive circular economy through policy, innovation and industry collaboration.

The conference addressed the lifecycle of automotive production, including eco-design, material use, recycling systems and regulatory alignment. A context paper titled ‘Accelerating India’s Transition to an Automotive Circular Economy’ was released during the proceedings.

The event saw discussions highlighting the expansion of India's scrapping infrastructure. There are currently between 125 and 130 Registered Vehicle Scrapping Facilities (RVSFs) operational across the country. Officials noted that while technology for recycling exists, challenges remains regarding traceability, policy clarity and the informal sector.

Key priorities identified for the sector include:

• 3R Framework: Implementation of schemes to reduce resource use, reuse components, and recover materials.
• Extended Producer Responsibility (EPR): Strengthening regulations to manage vehicle end-of-life.
• Digital Tracking: Improving the monitoring of vehicles to assist in disposal planning.
• Automated Testing: Expanding Automated Testing Stations to increase the flow of End-of-Life Vehicles (ELVs) to formal recyclers.

Mahmood Ahmed, Additional Secretary, Ministry of Road Transport and Highways, said, “We have a larger responsibility to meet the needs of the country. Our regulations and standards are aligned to reduce emissions, improve fuel efficiency, and promote cleaner fuels. The Vehicle Scrapping Policy, is a major step forward and the ecosystem is now developing with nearly 125 to 130 Registered Vehicle Scrapping Facilities operational.”

Prashant K Banerjee, Executive Director, SIAM, stated, “We must address air quality and vehicle end of life management, especially in Delhi NCR. ELV feed to Registered Vehicle Scrappage Facilities (RVSFs) needs to be increased. Documentation gaps with previous owners, especially for two-wheelers, and pending issues like unpaid challans, insurance and road tax must be resolved urgently.”

Vikram Kasbekar, Executive Director and CTO, Hero MotoCorp, added, “The development of Registered Vehicle Scrapping Facilities is key to a sustainable mobility ecosystem. Initiatives like PM E-Drive have strengthened the industry and sped up readiness. Engaging non-registered recyclers constructively will help formalise processes.”

The event featured sessions on material innovation and the role of startups in recycling. Participants discussed the use of copper, tyre recycling and carbon business models. The consensus among attendees was that circularity must be integrated into initial product design rather than being treated solely as a post-consumer activity.

The Sustainable Mobility Week concludes on 19 February with the 1st International Conference on Automotive Material Compliance and Sustainability.

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Audi is set to make its highly anticipated debut as a factory team in Formula 1 this March, and to mark the occasion, it is launching a comprehensive new merchandise line. Developed in partnership with adidas, the adidas x Audi Revolut F1 Team collection will be available to the public starting 19 February 2026. The initiative is designed to galvanise a global community and attract new followers to the brand by offering a tangible connection to its motorsport project.

The partnership has produced a diverse range of over 160 products, structured into two primary categories. The first is official teamwear, which features high-performance functional clothing unveiled in Berlin this January. This line incorporates advanced adidas technologies and is meticulously engineered for the specific demands of the team's personnel. This includes race-ready athletic wear for drivers Nico Hülkenberg and Gabriel Bortoleto, ergonomic and stylish garments for engineers during long stints at the track and durable, function-focused attire for the mechanics.

Complementing this is a dedicated fanwear collection aimed at a wider audience. Designed for everyday wear, it spans T-shirts, hoodies, jackets and footwear, blending modern lifestyle aesthetics with sportswear comfort. The fan range includes core essentials in the team’s primary colours to express team identity, as well as elevated pieces with subtle branding for a contemporary look. Exclusive merchandise for the two drivers is also featured. Throughout the season, limited-edition special drops will be introduced, celebrating the team's evolving identity and culture.

The entire collection draws its aesthetic from the Audi R26 race car. The teamwear features subtle grey and chalk tones inspired by the car’s titanium-coloured paintwork, while red accents serve as a unifying element, reflecting Audi’s broader visual identity in the championship. From 19 February 2026, fans will be able to purchase the collection through the team’s new e-commerce platform, as well as from adidas and select retail partners.

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