Umair
Last Updated:
Indian stock market may be hit by new US tariffs announced by President Trump. Auto stocks like Tata Motors, Eicher Motors, and Maruti Suzuki are in focus.
Auto stocks in focus after Trump imposes 25% tariffs on all foreign-made automobile.
Indian stock market is anticipated to rattle following the Asian market after US president Donald Trump announced new reciprocal tariffs on several nations, aimed at restructuring the trade imbalances. Several sectors in India will face the burnt of the move because of their export-orient nature.
Auto stocks including Tata Motors, Eicher Motors, Maruti Suzuki, Mahindra & Mahindra and Samvardhana Motherson are in focus today. Under the new tariffs, Trump announced to impose a 25 per cent tariffs on all foreign-made automobiles.
According to a report of CLSA, auto companies such as Tata Motor’s JLR, Bharat Forge, Sona BLW, and Samvardhana Motherson have businesses with US, indicating an impact on them.
India exports passenger vehicles, two-wheelers, and auto parts to the U.S., but the volume is relatively small. U.S. tariffs on steel and aluminum (25% and 10%) have increased costs for Indian auto manufacturers. Companies like Tata Motors (Jaguar Land Rover) and Mahindra & Mahindra face higher costs due to tariffs on metal imports.
India exports nearly $2 billion worth of auto components to the U.S. annually, making the auto components industry significantly impacted. However, the two-wheelers and motorcycles segment experiences limited impact. The U.S. imposed high tariffs on motorcycles over 800cc, affecting Royal Enfield and Harley-Davidson, which exports from India. Since India’s two-wheeler exports to the U.S. are relatively small, the overall impact remains limited.
U.S. tariffs on China indirectly benefit India. Higher tariffs on Chinese auto parts make Indian exports more competitive. In the electric vehicle (EV) sector, the impact is mixed. The U.S. imposes tariffs on Chinese EV batteries and components, creating opportunities for Indian manufacturers.
