The Indian automotive sector is unlikely to feel any major repercussions from US President Donald Trump’s reciprocal tariffs, thanks to its strong domestic market and high levels of localization. While global trade policies continue to shift, India’s automobile manufacturers remain well-positioned to weather the storm.According to Puneet Gupta, Director at S&P Global Mobility (India and ASEAN), Indian OEMs (Original Equipment Manufacturers) are largely insulated due to their focus on domestic production and minimal exports to the US. He further noted that India remains a preferred sourcing hub for American automakers, serving as the most viable alternative to China for auto components. However, the impact may not be entirely negligible. Certain niche segments, such as Royal Enfield’s 650 CC motorcycle range, could face challenges as the US is a significant export market for the brand. Additionally, some Indian auto component manufacturers might experience pressure if tariffs drive up costs.
Despite these potential hurdles, India’s booming automotive industry—driven by domestic demand, increasing localization, and a strong manufacturing base—is well-shielded from trade disruptions. As geopolitical and trade tensions evolve, Indian automakers must continue to strengthen supply chains and diversify export strategies to maintain their growth trajectory.
