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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Tata Motors, a leading passenger vehicle manufacturer, has added another feather to its cap, bagging two Red Dot Design Awards for the Avinya X Concept and Sierra Concept models. Martin Uhlarik led the in-house design for both models.  

The Red Dot Design Award, which was established in 1955, assesses design quality across three categories: Product Design, Brands & Communication Design and Design Concept. The competition has operated for nearly 70 years under the current brand structure developed in the 1990s by Red Dot CEO Professor Dr Peter Zec.

The Avinya X Concept first showcased at Bharat Mobility 2025 was recognised for its innovation through its design, stance and proportions. The vehicle features technologies such as matrix LED lighting, aero enhancements and wheels, which boost efficiency and emphasise its elegance. Its silhouette and enclosed surfaces balance strength, power and off-road capability while offering cabin space.

The interior is designed to rejuvenate mind and body, blending craftsmanship with wellness. Cabin details include fabric-wrapped soundbars, aroma diffusers and lounge-style rear seating. The dashboard integrates technology, providing information while minimising distractions for a driving experience. The Samudra exterior colour, paired with protective accents and detailing, enhances the concept's presence. The rear interior, crafted from materials, offers a lounge-like experience.

On the other hand, the revived Sierra design captures the charm of the original while embracing sophistication, balancing nostalgia with elegance. The rear glass has been reimagined as a combination of a finisher along the roofline and a panoramic sunroof to recreate the illusion of glass. This design gives the concept a roof appearance while meeting safety standards.

The exterior features surfaces that convey confidence and elegance. Haunches and a shoulder line contribute to a stance, reflecting the vehicle’s character. The rear is designed to express width and stability, with a tailgate that reinforces the stance. This design enables taillights. A D-pillar enhances the roof effect, creating continuity and flow.

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A traffic management initiative, undertaken by the Institute of Road Traffic Education (IRTE) for Gurugram Traffic Police and supported by the Hyundai Motor India Foundation (HMIF), aims to improve traffic management across 22 major intersections in Gurugram.

A scientific audit for these 22 intersections was completed by the Traffic Engineering Centre (TEC) and Organisation Development Centre (ODC), established by IRTE for the Gurugram police. Work to improve traffic management at two intersections, Rajiv Chowk and Shankar Chowk, has begun.

Dr Rohit Baluja, President, IRTE, said, “The Traffic Engineering Centre (TEC) has been designed to scientifically audit develop sustainable traffic management system for Gurugram under the aegis of the Gurugram Traffic Police, where IRTE's Road Safety Engineers observe traffic movement, violations, and behavioural issues of vulnerable road users, along with studying the causative factors related to congestion. These will be monitored and analysed through camera inputs of 218 junctions with the valuable support of the ICCC Gurugram.”

Under the Easy roads project, the IRTE team provided support to the Gurugram Traffic Police for:

• Conducting safety and traffic engineering audits across 22 major junctions and intersections.
• Reviewing and improving 15 km of key road stretches prone to congestion and risk.
• Rectifying identified blackspots to reduce accident occurrences.
• Developing safety and traffic management measures for school zones.
• Conducting feasibility studies on stakeholder proposals related to road safety and mobility.

Vikas Arora, Commissioner, Gurugram Police, said, “In coming days Gurugram police will increase enforcement by deploying 10-15 officers at each traffic violation spot across the city for a week to challan and stop violations. The Gurugram police has also increased challans for drunk driving as 30,000 challans were issued in a year as compared to 4000 in previous year. 32 black spots have been recognized in Gurugram and are being rectified by improving road engineering and signages”.

Saurabh S. Shrama, of Hyundai Motor India, said, “This initiative marks a significant step toward a data-driven and scientific approach to traffic management. Through collaboration with enforcement agencies and the application of forensic methodologies, we can ensure more sustainable and effective road safety interventions.”

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Iron Mountain, a global leader in information management services, has become an Official Partner of the McLaren Formula 1 Team, kickstarting a new multi-year partnership that will commence at the 2025 United States Grand Prix. The collaboration will leverage Iron Mountain’s expertise to spearhead a digital transformation of McLaren Racing’s legendary heritage archive.

Utilising an advanced AI-powered platform, the project will convert priceless historical materials, including vintage photography, film and technical blueprints, into an intelligent and dynamic digital resource. This initiative is designed to unlock new value from these assets, enabling McLaren to share its iconic history with a global audience. By creating new and immersive stories, the team aims to connect fans and partners more deeply to its legacy and the sport.

Furthermore, McLaren will utilise Iron Mountain’s global leadership in the secure and efficient management of end-of-life IT assets. As part of the agreement, Iron Mountain branding will be featured on the team’s race cars beginning in Austin, with additional visibility planned throughout the 2025 season and beyond.

Nick Martin, Co-Chief Commercial Officer, McLaren Racing, said, “Our fans are at the centre of what we do, and we are passionate about sharing our storied past with them. With the integration of Iron Mountain, we will be able to bring to life more of the team’s rich history for our fans and partners as we look to shine a light on the McLaren Racing brand.”

Greg McIntosh, Executive Vice President & Chief Commercial Officer, Iron Mountain, said, “We are proud to partner with the McLaren Formula 1 Team, which embodies the spirit of innovation and high performance at Iron Mountain. Our AI-enabled digital platform will help to fuel new opportunities for success and transform McLaren Racing’s iconic heritage media – protecting these timeless assets for future generations, connecting them to fans and partners and activating them to unlock value like never before.”

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The latest wholesales data shared by the Society of Indian Automobile Manufacturers Association (SIAM) for Q2 FY 2025–26 shows mixed domestic performance across segments, but strong growth in exports.

During Q2, passenger vehicle sales stood at 1.04 million units, down 2 percent compared to 1.05 million units last year. However, sales in September 2025 were up by 4 percent, with SUV segment with 204,938 units, down 1 percent YoY, accounting for around two-thirds of sales.

Two-wheelers posted sales of 5.56 million units, a growth of 7 percent YoY, supported by higher economic activity and the positive impact of a GST rate reduction. The scooter segment grew by 12 percent, compared to 5 percent YoY growth in motorcycles.

Three-wheelers recorded their highest-ever Q2 sales of 229,239 units, with a growth of 8 percent YoY, driven by the Passenger Carrier sub-segment’s 12 percent growth YoY.

Commercial vehicles sales stood at 239,781 lakh units, reflecting a growth of 8 percent YoY. Growth was broad-based, with Medium & Heavy Commercial Vehicles (MHCVs) and Light Commercial Vehicles (LCVs) both showing improvement.

The industry enters the second half of FY 2025–26 with renewed cheer, supported by the festive season momentum, stable macroeconomic conditions and GST 2.0 reforms. The extended festive and wedding season is expected to sustain growth momentum through Q3.

Shailesh Chandra, President, SIAM, said, "The GST 2.0 reform is a landmark decision of the Government of India, which apart from catapulting the Indian auto industry to the next level, would bring in vibrancy in the entire economy, as this industry is closely intertwined with strong forward and backward linkages. Inspite of the new GST rates coming into effect from of September, i.e. only for 9 days of the month, Passenger Vehicles, Two-Wheelers and Three-Wheelers have already posted their highest ever sales of September. In addition, very strong exports growth, in all segments in Q2, indicates the growing brand acceptance on Indian made vehicles. Looking ahead, the outlook for the sector remains encouraging on the back of key tailw

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