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.

Image for representative purpose only.

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As part of its evolving global roadmap, French automotive major Renault Group is increasingly aligning its strategy around a select set of high-growth markets, with India emerging as a critical pillar for the company’s future competitiveness.

Senior leadership indicated that the carmaker now views India not merely as a domestic sales market but as a full-fledged industrial and sourcing hub capable of strengthening its global supply chain. With localisation levels already exceeding 90 percent, the company believes the Indian ecosystem can play a significant role in improving cost competitiveness and supporting exports to other regions.

To accelerate this transformation, the Group strengthened its leadership structure in the India by appointing a Stephane Deblaise as its first Chief Executive Officer (CEO) to oversee the entire India operation. The move reflects a broader intent to deepen local decision-making and integrate the market more closely into Renault’s global strategy.

India and South America drive future trade opportunities

The company is also exploring the potential benefits of free trade agreements (FTAs) that could further strengthen export flows from India and South America.

Executives indicated that improved trade frameworks could enhance the role of India as a competitive production and sourcing base, particularly as global automakers reassess supply chains and regional manufacturing footprints.

At the same time, the company remains cautious in other global markets. Chinese suppliers currently account for around five percent of Renault’s global sourcing, and the group has no plans to re-enter the Chinese market in the near term.

A key shift in the group’s strategy since 2019 has been a move away from aggressively chasing volumes toward building stronger brand value and profitability.

Instead of pushing for market share in every region, Renault says it is focusing on markets where it can build a sustainable and profitable business case. The emphasis is now on delivering differentiated products, stronger customer value and improved quality rather than simply expanding volumes.

This philosophy is shaping the company’s approach to India as well.

Rather than targeting the entire market, Renault plans to focus on specific customer segments, particularly middle- and upper-income families seeking value-driven mobility solutions. The company believes that strengthening product positioning and improving residual values will ultimately support stronger brand perception.

India’s passenger vehicle market remains highly competitive, especially in the price band of EUR 15,000–20,000 vehicles, where global and domestic manufacturers are battling for share.

Historically, Renault established its presence in the country through entry-level offerings such as the Renault Kwid. However, the company is now looking to shift its brand positioning toward higher-value products.

The success of the Renault Duster in the past continues to shape Renault’s product roadmap, with the company describing the nameplate as a brand in itself in several markets. Building on this equity, Renault plans to introduce new SUV offerings that combine stronger design, advanced technologies and multi-energy powertrain options.

One such upcoming concept is the Renault Bridger, which the company believes could be a game changer in its product portfolio. Designed around flexible powertrain architectures, the model is expected to support multiple energy options as part of Renault’s broader global push toward electrified and hybrid mobility solutions.

The company emphasised that it is not starting from scratch in India, pointing out that millions of customers already drive Renault vehicles across the country.

Another major focus area for the group is accelerating product development cycles.

According to Renault’s leadership, one of the biggest challenges facing the global automotive industry today is the ability to develop new vehicles in less than two years while keeping pace with rapidly evolving technologies.

The company has already demonstrated faster development cycles in China and is now working to replicate that agility in Europe by integrating engineers and suppliers more closely into the product development process.

This approach could also influence Renault’s India strategy, particularly as the company looks to launch new products more quickly and respond faster to market shifts.

Strengthening downstream ecosystem

Beyond manufacturing and product strategy, Renault is also placing increasing emphasis on downstream value creation, including dealership networks, customer services and vehicle residual values.

Management believes that stronger engagement with dealers and improved lifecycle value for customers will be critical differentiators in markets like India, where brand perception and resale value play a significant role in purchasing decisions.

The company currently maintains capital expenditure and R&D spending below eight percent of revenue, while maintaining tight control over inventory levels, which average around EUR 1 billion globally.

While Renault acknowledges that its current market share in India remains modest, the company sees substantial long-term potential in the country’s rapidly expanding passenger vehicle market.

With a renewed focus on SUVs, high localisation levels and a shift toward value-driven products, the French automaker believes it has a credible opportunity to rebuild momentum in the market.

For Renault, the strategy is clear: rather than chasing scale at any cost, the company intends to grow selectively and profitably, with India playing an increasingly central role in its global ambitions.

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French automotive major Renault Group, which unveiled its mid-term business strategy ‘futuREady’, will see India playing a huge role in its ambitious growth plan.

Fabrice Cambolive, CEO, Renault Brand, has stated that the company’s upcoming Bridger SUV, slated to be a key driver for growth, will go into production by next year.

What’s more, the sub-4-metre tech-loaded Bridger SUV touted as the company's flagship for the international markets with a spacious 400-litre boot, will see India as its first market before being exported to other countries.

As part of its future plans, the Bridger SUV will be a multi-energy vehicle, which means petrol, electric vehicle and a hybrid engine to enable transition towards EV.

While full details of the product will be revealed closer to launch, the company has clearly stated that outside Europe, India, South America and South Korea are key growth regions.

The high-growth markets with an estimated 50 million units per annum, represent 60 percent of total industry volume growth where Renault Group is present.

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French automotive major Renault Group has launched its new strategic roadmap, titled futuREady, marking the next phase of its corporate transformation following the 2021 ‘Renaulution’ plan. The strategy aims to establish the Group as a benchmark European carmaker through an offensive in products, technology and operational performance.

The Group has set medium-term financial targets including an operating margin between 5 percent and 7 percent and an average automotive free cash flow of at least EUR 1.5 billion per year.

Product Offensive and Global Growth

Renault Group plans to launch 36 new models globally by 2030. The strategy focuses on two distinct geographic tracks:

• Europe: 22 new models, of which 16 will be electric. The Renault brand aims for 100 percent electrified sales in this region by 2030.
• International: 14 new models targeted at growth hubs in India, South America, and South Korea. The Group expects 50 percent of Renault brand sales to come from outside Europe by the end of the decade.

A cornerstone of the plan is the RGEV Medium 2.0 electric platform. This modular 800-volt architecture is designed to reduce costs by 40 percent compared to current electric vehicles.

Technical specifications for the 2030 horizon include:

• Charging: Ultra-fast charging capability of 10 minutes.
• Range: Up to 750 km (WLTP) for pure electric versions and 1,400 km with a range extender.
• Software: Transition from Software Defined Vehicles (SDV) to Artificial Intelligence Defined Vehicles (AIDV), with 90 percent of functions updated via Firmware Over The Air (FOTA).
• Powertrain: A third-generation rare-earth-free motor (EESM) delivering 275 hp with 93 percent motorway efficiency.

Renault Group intends to halve factory downtime and reduce energy consumption by 25 percent through the use of an industrial metaverse – a digital twin of all manufacturing sites. The plan involves deploying 350 humanoid robots for low value-added tasks and using AI to supervise 1,000 manufacturing control points. These measures aim for a 20 percent reduction in production costs and a 30 percent reduction in logistics costs.

Francois Provost, CEO, Renault Group, said, “futuREady, our new strategic plan, is a crucial step in the future of Renault Group. In an environment that is even more competitive, we can build on solid fundamentals: our brands, our products and our financial results. Since my appointment as CEO last July, we have been working with the whole team worldwide to develop a plan that will set the Group on the path to robust and sustainable performance, whatever the challenges ahead.”

“Becoming Europe's reference carmaker means setting the ambition to design and produce in Europe products that are best in class in terms of desirability, technology and competitiveness. In an increasingly competitive environment, this means combining performance and innovation with resilience and robust strength,” added Provost.

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Rolls-Royce Motor Cars has marked the conclusion of its year-long partnership with Aldingbourne Trust by presenting the charity with a series of exclusive artworks. These pieces were created by the luxury marque’s in-house design team and inspired by a wooden model gifted to Rolls-Royce by the Trust late last year.

That model, named the ‘Sapele Shadow’ after the wood used in its construction, was made by the Wood@Aldingbourne team as a gesture of gratitude when Rolls-Royce delivered its final donation. Now displayed at the company’s Goodwood headquarters, the handcrafted vehicle prompted one of the marque’s designers to reinterpret it digitally using the same advanced rendering software applied for client commissions.

Only three framed prints of this original artwork have been produced, each signed and numbered by the designer. One is set to be displayed in the Aldingbourne Trust café, another has been presented to the Wood@Aldingbourne workshop and the third will be auctioned to support the charity during the Goodwood Members’ Meeting in April.

Wood@Aldingbourne is one of over a dozen social enterprises run by the Trust, which has supported more than 1,500 individuals with learning and physical disabilities since its founding in 1978. Operating as a self-funding environmental group, it collects and repurposes reclaimed wood from local sources, including the Rolls-Royce site. All materials are either transformed into handmade goods for sale or used to fuel the Trust’s biomass boiler.

The relationship between Rolls-Royce and Aldingbourne Trust extended beyond fundraising throughout 2024, with colleagues contributing both time and resources. This ongoing collaboration reflects the meaningful connections formed when employees engage with their chosen House Charity, often resulting in support that endures well beyond the official partnership.

Andrew Ball, Head of Corporate Relations, Rolls-Royce Motor Cars, said, “It was a privilege to work with Aldingbourne Trust as our House Charity in 2024. When we presented the final donation cheque, we received an unexpected gift – a model car made in Sapele wood by the Wood@Aldingbourne team. This delightful model inspired one of our designers to create a unique digital rendering, just as we would for a real client commission. We’re delighted that this artwork will be displayed in the Trust’s café and will also be offered as a significant prize in a fundraising auction. It’s a pleasure to extend our support for this wonderful organisation beyond 2024.”

Abigail Rowe of Aldingbourne Trust said, “We were so appreciative of the fundraising efforts by Rolls-Royce staff, and the tremendous awareness we were able to generate through being their House Charity. It’s wonderful that the relationship has continued through this collaboration, which meant so much to the client who created the original wooden model, and will help raise further money for us. We’d like to thank the whole Rolls-Royce team, and particularly the talented designer who created these images for us.”

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