- US President Donald Trump
- 2 April 2025
- American Industry
- broad new tariff policy
- duty
- imports
- India
- 26 percent
- ‘discounted' reciprocal tariffs
- China
- Countries
- auto industry
- ancillary
- ACMA
US President Donald Trump Announces Retaliatory Tariffs; Indian Government Carefully Examining The Implications
- By Bhushan Mhapralkar
- April 03, 2025

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.
VE Commercial Vehicles Digitalisation Drive Offers Smart Gains For Customers
- By Nilesh Wadhwa
- September 04, 2025

The Gurgaon-headquartered commercial vehicle major looks beyond just selling trucks and buses. The company’s focus on digitalisation and aftersales, it believes, is what the new-age customers need.
In the high-stakes world of commercial transportation, time is money – quite literally. Every hour a truck is off the road can mean missed deliveries, idle drivers, delayed shipments and unhappy customers. In India’s competitive commercial vehicle (CV) industry, the ability to minimise downtime and maximise uptime has become a critical differentiator for automakers.
For VE Commercial Vehicles, this principle has been elevated into a business philosophy. Over the past few years, the company has invested heavily in digital tools, predictive maintenance capabilities and an expanded service footprint to ensure that customers’ vehicles are running at peak performance for as many hours of the year as possible.
In an exclusive interaction with Motoring Trends, Ramesh Rajagopalan, EVP - Customer Service, Retail Excellence & Network Development, at VECV, shared his team’s work spans a network of over a thousand service points, a nationwide telematics backbone and a growing portfolio of uptime initiatives that integrate technology, training and process discipline.
Building a network
VECV’s current footprint exceeds 1,100 outlets across India, with an average of 10–12 new additions each month. This network covers the full range of commercial vehicles – from heavy-duty trucks and buses to light and small commercial vehicles.
The company’s growth is not limited to conventional CV outlets. The small commercial vehicle (SCV) network, particularly for electric models, is being built almost from scratch.
Rajagopalan revealed that the company is “working towards creating a network of exclusive dealerships for the newly launched Eicher Pro X, designed to deliver a premium, digitally enabled customer experience. These born-digital outlets will function as one-stop destinations offering advanced product customisation, EV-ready infrastructure and seamless access to connected services. With a focus on uptime, personalisation and convenience, the Pro X dealerships will redefine commercial vehicle retail by offering a car-like, modern environment tailored to the evolving needs of today’s fleet operators.”
“The starting point for us was to identify where we’re missing out – the ‘white spots’, where customers are already buying trucks and buses, but we aren’t present. The East and Northeast were clear gaps. We also looked at the service side: customers expect to have the nearest touchpoint for any service need, parts availability anywhere and 24x7 breakdown support,” he said.
These expectations are complicated by India’s rapidly evolving road infrastructure. With new expressways and freight corridors coming online, VECV has had to rethink its physical network, sometimes relocating facilities, other times adding new ones to stay close to high-traffic routes.
Telematics as the backbone of service planning
The decision to equip 100 percent of VECV’s BS6 vehicles with telematics was a strategic move made early in the transition to the stricter emission norms. The company shared that the BS6 trucks are far more electronically complex, with multiple sensors feeding real-time data on performance, emissions and potential faults.
Rajagopalan explained, “In BS6, any sensor failure that risks an emissions breach triggers a limp-home mode. That’s standard globally. But it can disrupt a customer’s operations if not handled quickly. We saw early on that predictive algorithms could identify error-code patterns that lead to breakdowns, allowing us to intervene before the vehicle stops.”
One example is AdBlue misuse – diluting diesel exhaust fluid with water, which can cause the vehicle to derate. Through telematics, VECV can detect the signs and remotely guide drivers on corrective steps, often via a quick video call.
This predictive maintenance model categorises alerts into three groups:
- Stop Now – requiring immediate action to prevent damage.
- Do It Yourself – where drivers can resolve the issue with guided support.
- Visit Soon – logged into the system so any VECV workshop can address it at the next scheduled service.
Measuring each minute
Digitalisation doesn’t stop at the vehicle. Every VECV workshop uses tablets to track a vehicle from the moment it enters the workshop, through job card creation, repair start and completion, invoicing and gate-out. Customers can see their vehicle’s status in real-time on display boards.
This transparency is more than cosmetic; it drives accountability. Every morning, operational teams review any vehicle that missed its promised delivery time, escalating cases that need additional support.
A recent initiative even monitors waiting times before work begins. If a loaded truck sits for more than an hour, the central control centre calls the dealer to find out why and get it moving. “For our customers, every minute is money. We can’t afford bottlenecks,” revealed Rajagopalan.
Retention in telematics
A common challenge in connected services is renewal beyond the complimentary period. VECV includes two years of telematics subscription with every vehicle and has kept renewal costs at about INR 6,000 annually.
In the early days, renewal rates were low. But targeted engagement – including onboarding every customer on the My Eicher app at delivery, monthly operating review meetings with large fleets and customised reports – has pushed renewal rates among big operators to 80–85 percent.
For smaller operators, overall renewal rates are about 35 percent, but with over 350,000 connected vehicles on Indian roads, the base is significant. VECV also addresses multi-device fatigue – where customers were earlier forced to install separate tracking units for clients or state mandates, by offering API integration, allowing its data to feed into external systems and avoiding duplicate hardware.
Perhaps the most distinctive element of VECV’s service model is its Uptime Centre, located at the company’s manufacturing plant. This facility operates 24x7, staffed with technical experts who can remotely diagnose issues, advise on repairs and escalate complex cases to R&D or manufacturing engineers.
If a problem can’t be resolved remotely within a couple of hours, specialist engineers, or what the company calls ‘flying doctors’, are dispatched to the vehicle location. The Uptime Centre also monitors parts queries, workshop performance and telematics alerts, ensuring that field teams have expert backup at all times.
Parts availability
Downtime isn’t just about repairs, but it is also about parts. To address this, VECV has identified 250 high-demand parts and mandated that every workshop keeps them in stock. If any of these parts is unavailable and not supplied within 24 hours, it is provided free of charge.
This guarantee is part of a broader spare parts strategy that includes decentralised stocking, demand forecasting based on telematics data and close coordination between dealers and the central supply chain.
With trucks and buses running more kilometres per year than ever – e-commerce trucks and long-distance buses reaching 200,000 km annually – service demand is growing even as reliability and service intervals improve.
To meet this, VECV has:
- 70 workshops operating round-the-clock, 365 days a year.
- Nearly 300 workshops running extended hours or double shifts.
- Training programmes to upskill technicians for faster, more accurate repairs.
- Investments in better workshop tools and equipment to boost productivity.
Dealers as partners in performance
Rajagopalan believes dealer capability is as important as infrastructure: “Today’s customers don’t tolerate delays. Delivery commitments that were acceptable in a week are now expected in hours. That pressure flows through the entire supply chain.”
VECV has put process discipline and transparency at the core of dealer operations. Every dealer is connected to the central system, with KPIs on breakdown response time, parts availability and repair turnaround. These metrics are published internally, creating healthy competition among regions to be ‘best-in-class.’
Rajagopalan shared his five strategic priorities or key focus areas –
- Service Capacity Expansion – adding workshops, increasing working hours and boosting throughput per facility.
- Competency Development – continuous technician training for faster, first-time-right repairs.
- Parts Availability – maintaining high stock levels of critical components, backed by guarantees.
- Predictive Maintenance Evolution – extending analytics beyond sensor data to wear-and-tear parts like clutches and brakes.
- Telematics Insights – leveraging connected data for deeper operational recommendations to customers.
While much of VECV’s work is grounded in engineering and technology, Rajagopalan emphasises that the company’s philosophy is human-centred. “Our uptime promise is non-negotiable. Every innovation, whether digital or operational, is aimed at keeping our customers’ wheels turning. That’s how they earn and that’s how we build trust,” he said.
From a strategic perspective, VECV’s approach reflects an industry-wide shift. The CV market is no longer just about selling hardware; it’s about selling an ecosystem of services, digital capabilities and operational support – and backing it up with the speed and reliability that today’s logistics-driven economy demands.
Government Reduces GST On Mass Market PVs, 3Ws & 2Ws From 28% To 18%
- By MT Bureau
- September 04, 2025

The Finance Ministry, Government of India, has reduced Goods & Services Tax (GST) on new vehicles from 28 percent to 18 percent, effective 22 September 2025.
The move is part of the government’s focus to simplify the tax structure, along with pushing domestic consumption to cushion from external economic impacts such as US tariffs.
For the automotive industry, the government has reduced GST on petrol, petrol-hybrid, LPG, CNG (not exceeding 1200 cc and 4000mm) from 28 percent to 18 percent. Similarly diesel and diesel-hybrid vehicles (not exceeding 1500 cc and 4000 mm) the taxes have been revised to 18 percent. For three-wheelers, motor vehicles for transport of goods and two-wheelers (upto 350cc and below) are being taxed in the 18 percent bracket.
On the other hand, luxury vehicles, two-wheelers (above 350cc) and petrol (exceeding 1200 cc and 4000 mm) and diesel vehicles (exceeding 1500 cc and 4000 mm) are expected to be taxed in the 40 percent bracket.
In what may comes as a cheer for the agrarian economy sector, the government has slashed GST on tractor tyres and part from 18 percent to 5 percent; tractors from 12 percent to 5 percent and agricultural machinery from 12 percent to 5 percent respectively.
Welcoming the decision, Dr. Anish Shah, Group CEO & MD, Mahindra Group, said, “The next-generation GST reforms announced today mark a defining moment in India’s journey towards building a simpler, fairer, and more inclusive tax system. By moving to a streamlined two-rate structure and focusing on essentials that touch the lives of every citizen- from food, health, and insurance to agriculture and small businesses -the Government has reaffirmed its commitment to Ease of Living and Ease of Doing Business. The rationalisation measures will not only provide immediate relief to households but also strengthen key sectors such as automobiles, agriculture, healthcare, renewable energy, and MSMEs - all of which are vital to job creation and sustainable growth. The correction of long-pending inverted duty structures in critical industries is welcome. At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence. This bold step is in line with the vision articulated by the Hon’ble Prime Minister of building a citizen-centric, future-ready Bharat. It strengthens India’s economic foundations and will help drive the next phase of equitable and inclusive growth- journey towards Viksit Bharat @2047.”
- Toyota Kirloskar Motor
- Presidency University
- M. Tech
- Automotive Information Technology
- G Shankara
- Dr. Nissar Ahamed
Toyota Kirloskar Motor And Presidency University Launch M. Tech In Automotive IT
- By MT Bureau
- September 03, 2025

Toyota Kirloskar Motor (TKM), one of the leading passenger vehicle manufacturers, and Presidency University (PU) in Bengaluru have joined forces to introduce a new M. Tech program in Automotive Information Technology.
The partners have signed a Memorandum of Understanding (MoU), which aims to develop a new generation of engineers with the skills needed for the rapidly evolving automotive industry that is increasingly focused on software and IT solutions.
The four-semester program is designed to provide students with both theoretical knowledge and practical experience. An initial intake of 18 students will have the opportunity to participate in global internships with Toyota, gaining hands-on exposure to advanced technologies.
This collaboration will see both parties jointly develop the curriculum, with TKM providing insights into industry needs and emerging trends. The automaker will also facilitate the setup of specialised on-campus laboratories, while Presidency University will manage the facilities and day-to-day operations.
Leaders from both organizations emphasized the need to bridge the gap between academic learning and industry demands.
G Shankara, Executive Vice-President of Finance and Administration, Toyota Kirloskar Motor, said, “The auto industry is undergoing a paradigm shift with the advent of software-defined vehicles, autonomous technologies and connected mobility solutions. At TKM, we recognise the urgent need to develop a new generation of engineers who are as adept in IT as they are in automotive systems. With Presidency University, we aim to meet our organizational talent requirements and contribute to India’s emergence as a global hub for automotive IT expertise.”
Dr. Nissar Ahamed, Chancellor of Presidency University, said, “This collaboration aims to bridge the gap between academic learning and industry needs. By working closely with Toyota Kirloskar Motor, our students will gain hands-on experience with cutting-edge technologies shaping the future of mobility. We are confident that this initiative will empower our students to lead in a rapidly transforming industry landscape.”
- Tata Motors
- TVS Motor Company
- Bajaj Auto
- Mahindra & Mahindra
- Nalinikanth Gollagunta
- Toyota Kirloskar Motor
- Varinder Wadhwa
- Tata Motors
- VE Commercial Vehicles
- Ashok Leyland
Indian Auto Sales – August 2025: Mixed Trends Across Segments
- By Nilesh Wadhwa
- September 01, 2025

The Indian automobile industry saw varied performances across two-wheelers, passenger vehicles, and commercial vehicles in August 2025, with TVS Motor Co posting record-breaking numbers, Bajaj Auto seeing a dip in motorcycles, while Mahindra & Mahindra, Tata Motors, Toyota Kirloskar Motor and VE Commercial Vehicles reporting steady to moderate growth.
TVS Motor Company achieved its highest-ever monthly sales, crossing the 500,000 units milestone. Domestic two-wheeler sales rose 28 percent from 289,073 units in August 2024 to 368,862 units in August 2025. Motorcycle sales grew 30 percent, while scooter sales jumped 36 percent. In the three-wheeler segment, TVS Motor Co saw a 47 percent increase with 18,748 units sold.
Bajaj Auto reported a decline in the domestic two-wheeler market, with sales falling 12 percent to 184,109 units from 208,621 units last year. However, three-wheeler sales showed resilience, recording 48,289 units, a 7 percent growth over August 2024.
Suzuki Motorcycle India reported domestic sales growth of 5 percent at 91,629 units, as compared to 87,480 for same period last year. On the exports front, the company shipped 22,307 units, which was 29 percent higher YoY. Interestingly, the company reported its highest-ever spare parts sales in August 2025 at INR 856 million, up 21 percent YoY.
Deepak Mutreja, Vice-President – Sales & Marketing, Suzuki Motorcycle India, said, “We extend our heartful gratitude to our customers for their continued trust in Suzuki two-wheelers. The growth in August sales gives us momentum going into the festive season and we look forward to delighting more customers with our products and services.”
Mahindra & Mahindra faced pressure in the utility vehicle (SUV) segment, where sales declined 9 percent YoY to 39,399 units. On the other hand, commercial vehicle sales rose to 22,427 units, supported by strong growth in the 2T–3.5T LCV category and three-wheelers.
Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra & Mahindra, said, “August witnessed relatively robust demand in the SUV segment amidst anticipated GST rate changes. This month, Mahindra reported 7.4 percent YoY growth in PV Vahan registrations. In our commercial vehicles segment, Vahan registrations grew by 16 percent YoY (<7.5T LCV category). With the final GST announcement approaching, we consciously decided to bring down the wholesale billing to minimise the stock being carried by our dealers. We look forward to the GST rationalisation, which would be a demand driver through the festive season. Total vehicle sales stood at 75,901 units, marking a flat growth compared to the same period last year, with SUV sales of 39,399 units recording -9 percent YoY decline.”
Tata Motors recorded total domestic sales of 68,482 units, down 2 percent from 70,006 units in August 2024. Passenger vehicle sales, including EVs, fell 7 percent to 41,001 units, while commercial vehicle sales rose 6 percent to 27,481 units. Notably, Tata’s EV sales surged 44 percent to 8,540 units.
Toyota Kirloskar Motor maintained its growth trajectory with domestic sales of 29,302 units, an 11 percent increase over August 2024.
Varinder Wadhwa, Vice-President, Sales-Service-Used Car Business, said, “We sold 34,236 units in August 2025, maintaining our steady presence in the market and are encouraged by the continued trust customers place in our cars and services. September will be an important phase for the industry overall and we will closely observe market trends as they unfold. At Toyota, our focus remains on innovating and introducing value-added services through the festive season, with the hope of uplifting customer sentiment and making purchase decisions easier and more joyful.”
Ashok Leyland witnessed a flat growth with 13,622 units sold in the domestic market, which was 2 percent higher than 13,347 units sold last year. This includes 7,991 M&HCVs, up 3 percent YoY and 5,631 LCVs, up 1 percent YoY.
VE Commercial Vehicles reported domestic sales of 6,331 units, a 5 percent growth over 6,028 units sold in August 2024.
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