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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Maruti Suzuki India Limited marked a significant operational achievement with its Manesar in-plant railway siding, which crossed the 100,000-dispatch mark in under nine months. Being India’s largest facility of its kind and the company’s second PM GatiShakti terminal, this siding has played a key role in reducing environmental impact by avoiding an estimated 16,800 metric tonnes of CO2 equivalent emissions.

The siding facilitates the movement of popular models from the Gurugram and Manesar plants, including Alto, Brezza and Dzire, through a robust hub-and-spoke network. With over 500 rakes since it commenced operations in June 2025, the company now efficiently serves 380 cities from 17 hubs. This logistical strength builds on Maruti Suzuki’s legacy as the first automaker to secure an AFTO (Automobile-Freight-Train-Operator) license back in 2013, having moved more than 2.95 million vehicles by rail since fiscal 2014-15.

By advancing rail-based dispatch, the company actively contributes to UN Sustainable Development Goal 13. This initiative underscores its ongoing commitment to integrating sustainability into core industrial operations.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited, said, “In June 2025, Hon’ble Union Minister for Railways, Information and Broadcasting, Electronics & Information Technology, Shri Ashwini Vaishnaw and Hon’ble Chief Minister of Haryana, Shri Nayab Singh Saini inaugurated India’s largest automobile in-plant railway siding at our Manesar plant. I am happy to share that within a short span of nine months, we have dispatched 100,000 units, through this siding. This initiative reinforces our commitment to reduce carbon footprint in vehicle dispatches while easing overall road congestion. At full capacity, the Manesar siding has the capability to dispatch 450,000 units annually.

“In CY 2025, the company set a record by dispatching over 585,000 vehicles through railways. Interestingly, in the past decade, our share of rail mode in outbound logistics has grown exponentially, from 5 percent in 2016 to 26 percent in 2025. Going forward, we aim to scale up rail-based vehicle dispatches from the current 26 percent to 35 percent by FY 2030-31, in line with our commitment to build efficient and sustainable logistics and contribute to India’s net-zero ambition.”

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The Society of Indian Automobile Manufacturers (SIAM) has unveiled its ‘Smart Integrated Automotive Mobility Lab (SIAM Lab)’ at the Smart Mobility India Expo 2026. Held at Bharat Mandapam from 23–25 March 2026, the pavilion serves as a collaborative platform for original equipment manufacturers (OEMs), technology providers and research institutions.

The SIAM Lab, located in Hall-1, is organised into three functional areas designed to demonstrate the evolution of the Indian automotive sector:

• Sustainable Mobility: Focusing on decarbonisation and green transport.
• Research & Testing: Showcasing validation frameworks and safety standards.
• Technology: Highlighting software-defined vehicles and connectivity.

The exhibit features 14 electrified vehicles from manufacturers including Tata Motors, Kia India, JSW MG Motor India, Toyota Kirloskar Motor, BMW India and Hyundai Motor India. Two-wheeler and last-mile segments are represented by TVS Motor Company, Honda Motorcycle & Scooter India, Ather Energy, Hero MotoCorp, Montra Electric and EKA Mobility.

The initiative involves partnerships with technical and data entities such as ARAI, Qualcomm, HERE Technologies, Google, ITS India Forum and Onnyx. These collaborations aim to integrate hardware with digital infrastructure, reflecting the industry's shift towards smart mobility solutions. The exhibition aligns with national objectives for advanced and sustainable transportation.

Prashant K Banerjee, Executive Director, SIAM, said, “The SIAM Lab reflects the collective strength of India’s automotive ecosystem in advancing smart and sustainable mobility. Our participation at the Smart Mobility India Expo provides a platform to showcase innovation, foster collaboration, and highlight the industry’s readiness for future mobility solutions.”

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Recreatives Industries, the manufacturer behind the legendary MAX 6×6 Amphibious All-Terrain Vehicles, is broadening its sales network by welcoming two new authorised dealers. The company has added Cart Guys Inc., based in Gastonia, North Carolina, alongside Globalsoft Equipment in Rochester, New York, which operates as Global MAX ATV. With Cart Guys Inc. coming on board as the second new dealer added in 2026, the United States dealer network now encompasses nine locations.

This expansion marks a strategic step in rebuilding what was once a robust North American dealer network that historically included over 200 active sites. Management views this legacy as proof of the platform’s long-term scalability as efforts continue to reestablish and grow the company’s retail presence. The focus remains on cultivating a high-quality, geographically diverse network capable of supporting rising demand across recreational, hunting and commercial sectors.

Commercial adoption of MAX ATVs is already evident, with vehicles being utilised by aqua management firms and the U.S. Army Corps of Engineers, alongside a loyal customer base in hunting and recreation. Upcoming models, including the MAX 4 and Buffalo, are expected to further extend the brand’s footprint into utility, industrial and commercial markets. Production of the MAX 2 is currently active and additional models are scheduled to launch in the summer of 2026, with the dealer network being aligned to support both current sales and these new introductions.

Recent operational developments include a truckload delivery of vehicle bodies to sustain ongoing MAX 2 production following the completion of the initial manufacturing run. Concurrently, the company is converting the existing MAX 4 and Buffalo moulds into its 3D CAD system, preparing for the initial production of next-generation vehicle bodies. This overall momentum reflects Recreatives Industries’ broader strategy to strengthen market presence, enhance customer access and build a scalable distribution network positioned for future growth.

Andrew Lapp, CEO, Recreatives Industries said, “Expanding our dealer network is a core priority as we continue building momentum behind the MAX brand. Adding Cart Guys in North Carolina, along with Globalsoft Equipment in New York, strengthens our regional coverage and positions us to better serve customers across key markets.”

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Vedanta Aluminium has deployed its first cohort of 30 women crane pilots at the Bharat Aluminium Company  (BALCO) unit in Korba, Chhattisgarh. The group includes 20 Pot Tending Machine (PTM) pilots and 10 beam-raising operators, marking a shift toward women-led operations as the facility enters the ‘million tonne club’.

The pilots operate in a smelting environment, executing tasks for stable metal production. These responsibilities include: anode changing & covering, tapping of molten aluminium and beam raising activities across all potlines.

The deployment followed a training programme involving classroom instruction, simulator sessions and on-the-job exposure. Currently, beam-raising activities at the plant are led by women designated as Beam Raising In-Charge in each room.

The initiative is part of a broader strategy to automate core manufacturing roles and make them gender-agnostic. Vedanta Aluminium has previously implemented:

• Jharsuguda: India’s first fully women-operated potline.
• Lanjigarh: An all-women team managing the digital command centre at the alumina refinery.
• Logistics: An all-women locomotive crew for in-plant rail operations.

BALCO also integrates transgender professionals into functions such as forklift operations and security, supported by policies including financial assistance and paid leave for gender reaffirmation.

Rajiv Kumar, CEO, Vedanta Aluminium, said, “Automation and advanced technologies are reshaping how modern aluminium operations function across all our units. This transformation is creating space for a new generation of highly skilled professionals to lead critical, technology-enabled roles. At Vedanta Aluminium, we are proud to see women stepping confidently into these specialised positions across our operations. This milestone at BALCO reflects our commitment to building a future-ready workforce while fostering greater participation of women in core manufacturing.”

Naaz Fatima, a PTM pilot, commented, “Working as a PTM pilot is both challenging and deeply rewarding. What I value most is that the company trusts us with these critical operations and invests in our growth. It feels empowering to know that our work directly contributes to BALCO’s progress and that we are shaping a new future for women in industrial roles.”

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