Indian Companies Impacted by Trump’s 25% Auto Tariff

US President Donald Trump has announced a 25 percent tariff on overseas auto imports, and it is expected to impact Indian companies such as Tata Motors, Eicher Motors, Sona BLW, and Samvardhana Motherson. Tata Motors does not have direct exports to the US, but its subsidiary Jaguar Land Rover (JLR) has a strong foothold in the American market.

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According to JLR’s FY24 annual report, the US accounted for 22 per cent of its overall sales. In FY24, JLR sold nearly 400,000 vehicles worldwide, with the US being one of its top markets, the report added. Meanwhile, Eicher Motors, the maker of Royal Enfield motorcycles, could also feel the impact, as the US is an important market for its 650cc models.

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Sona Comstar Diversifies to Mitigate Tariff Impact, Expands into Eastern Markets

As one of India’s leading auto component manufacturers, Samvardhana Motherson International Ltd has a strong footprint in both Europe and the US. It supplies parts to major American automakers, including Tesla and Ford. However, with established manufacturing units in the US and Europe, the company is relatively shielded from the impact of import tariffs, unlike firms that rely solely on exports, the report added.

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Sona Comstar manufactures automotive systems and components, including differential gears and starter motors. The company derives about 66 percent of its revenue from the US and European markets. To mitigate risks, Sona BLW has been diversifying its export base by expanding into China, Japan, and South Korea, aiming for these Eastern markets to contribute over 50 per cent of its revenue within five years. Shipments to the US and Europe, the world’s biggest importers of auto parts, made up approximately 4.5 per cent of the total global trade.