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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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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In a collaboration that fuses past and present motorsport excellence, Caterham and its Surrey-based retail partner HWM have unveiled the Seven HWM Edition. This limited-edition model pays tribute to the celebrated 1951 HWM-Alta Grand Prix car, a machine that helped define an era for British racing.

The Seven HWM Edition is limited to just 19 units for the UK market, each priced from GBP 57,990. Every example features a distinctive HWM Green exterior, a colour meticulously matched to the original 1951 racer. Design cues drawn directly from its predecessor include bespoke side panel louvres, a unique nosecone grille and suspension components finished in Retro Grey. Additional touches such as a custom HWM nosecone badge and a central chrome fuel filler cap reinforce the connection.

Inside, the hand-turned aluminium SuperSprint dashboard continues the tribute, equipped with classic SMITHS chrome instrumentation, a solid metal cut-off switch and a polished wood-rimmed Moto-Lita steering wheel. The cabin is completed with optional leather or composite seats bearing the HWM logo, while chrome accents on the gear knob and handbrake add refinement.

Mechanically, the car is rooted in the Seven 420, powered by a 210 bhp 2.0-litre Duratec engine. With a power-to-weight ratio of 375 bhp per tonne, it delivers exhilarating performance, accelerating from 0 to 60 mph in just 3.8 seconds. A numbered dashboard plaque, indicating its exclusivity, is fitted to each of the 19 cars.

HWM, originally established in 1938 as Hersham and Walton Motors, built its reputation as the first British team to claim a Grand Prix victory after the war. Yet it was the 1951 HWM-Alta that truly solidified its place in history, securing numerous international podium finishes with a roster of drivers that included the legendary Sir Stirling Moss. Now primarily a luxury sports car specialist, HWM became an official Caterham retailer for the South East in 2023, making this partnership a natural extension of its longstanding connection to performance engineering.

Trevor Steel, Senior Vice President of Operations & CFO, Caterham Cars, said, “It’s been a real privilege to work with HWM on this special limited edition. Drawing inspiration from the legendary HWM-Alta racer, this car pays tribute to Walton-on-Thames’ rich racing heritage while celebrating the lightweight, driver-focused ethos that defines what Caterham is today. Bringing together two iconically British brands with deep roots in motorsport made this project especially meaningful. It reflects a shared commitment to engineering purity, performance and craftsmanship – values that have shaped both our histories and continue to drive us forward. We’re proud to honour that with a car created for true enthusiasts.”

Guy Jenner, CEO, HWM, said, “We are immensely proud to celebrate HWM’s remarkable history as a works team and grand prix car constructor. This project has given us a unique opportunity to tell the story of how a small outfit from Walton-on-Thames took on the greatest teams in European grand prix racing during one of motor racing’s most inspiring eras. Our sincere thanks go to Caterham for being such an enthusiastic and committed partner. Each of the 19 hand-built cars showcases exquisite detailing, with an outstanding sense of quality and craftsmanship.”

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