New Delhi: India's $80 billion auto component industry is expected to face limited long-term impact from the heavy tariffs imposed by the US and Mexico due to comparatively low exposure to these markets, said industry executives on Friday.
Exports to the US and Mexico are currently modest-at about $6.6 billion and $500 million respectively each year. A little over half the exports to the US are already facing tariffs comparable to those levied on competing exporters. The bigger concern is over the $3 billion worth of commercial and off-road vehicle parts now facing 50% tariffs since the Trump administration moved to double the tariffs on most Indian goods from August 27.
Vikrampati Singhania, president of ACMA and MD of auto parts maker JK Fenner, said while customers have multi-sourcing agreements, these are for customised parts where technology and investments are already made.
"Any abrupt overnight changes will go against the strategic rationale of multi-vendor partnerships," he said, adding that customers have adopted a wait-and-watch approach in the US, a big export market for JK Fenner.
Singhania was speaking on the sidelines of the annual conference of the Automotive Component Manufacturers Association of India (ACMA). Suppliers acknowledged that multi-sourcing allows customers to cut imports from a particular location if costs rise, which means higher landed costs from India will have an impact till the extra tariifs stay. The bigger pain point, however, is that decision-making and contract signings have slowed amid geopolitical uncertainty. Still, industry leaders expect exports to bounce back, supported by India's cost edge and the global shift to more resilient supply chains. Reports by McKinsey and ICRA have highlighted opportunities in ICE powertrain parts, where falling global volumes make high-cost locations less viable.
Ashok Minda, chairman of Spark Minda Group, pointed to wiring harnesses which his company exports as a category where India can win big. "It is labour-intensive, and with frequent design changes as vehicle features evolve, India is an ideal manufacturing partner," he said.
Vivek Vikram Singh, MD of Sona Comstar, which derives 60% of its sales from exports, added that India's current share is still very small compared to the European market opportunity, leaving ample room for growth when India and the EU sign a proposed free trade agreement (FTA).
New Delhi: India's $80 billion auto component industry is expected to face limited long-term impact from the heavy tariffs imposed by the US and Mexico due to comparatively low exposure to these markets, said industry executives on Friday.
Exports to the US and Mexico are currently modest-at about $6.6 billion and $500 million respectively each year. A little over half the exports to the US are already facing tariffs comparable to those levied on competing exporters. The bigger concern is over the $3 billion worth of commercial and off-road vehicle parts now facing 50% tariffs since the Trump administration moved to double the tariffs on most Indian goods from August 27.
Vikrampati Singhania, president of ACMA and MD of auto parts maker JK Fenner, said while customers have multi-sourcing agreements, these are for customised parts where technology and investments are already made.
"Any abrupt overnight changes will go against the strategic rationale of multi-vendor partnerships," he said, adding that customers have adopted a wait-and-watch approach in the US, a big export market for JK Fenner.
Singhania was speaking on the sidelines of the annual conference of the Automotive Component Manufacturers Association of India (ACMA). Suppliers acknowledged that multi-sourcing allows customers to cut imports from a particular location if costs rise, which means higher landed costs from India will have an impact till the extra tariifs stay. The bigger pain point, however, is that decision-making and contract signings have slowed amid geopolitical uncertainty. Still, industry leaders expect exports to bounce back, supported by India's cost edge and the global shift to more resilient supply chains. Reports by McKinsey and ICRA have highlighted opportunities in ICE powertrain parts, where falling global volumes make high-cost locations less viable.
Ashok Minda, chairman of Spark Minda Group, pointed to wiring harnesses which his company exports as a category where India can win big. "It is labour-intensive, and with frequent design changes as vehicle features evolve, India is an ideal manufacturing partner," he said.
Vivek Vikram Singh, MD of Sona Comstar, which derives 60% of its sales from exports, added that India's current share is still very small compared to the European market opportunity, leaving ample room for growth when India and the EU sign a proposed free trade agreement (FTA).
Exports to the US and Mexico are currently modest-at about $6.6 billion and $500 million respectively each year. A little over half the exports to the US are already facing tariffs comparable to those levied on competing exporters. The bigger concern is over the $3 billion worth of commercial and off-road vehicle parts now facing 50% tariffs since the Trump administration moved to double the tariffs on most Indian goods from August 27.
Vikrampati Singhania, president of ACMA and MD of auto parts maker JK Fenner, said while customers have multi-sourcing agreements, these are for customised parts where technology and investments are already made.
"Any abrupt overnight changes will go against the strategic rationale of multi-vendor partnerships," he said, adding that customers have adopted a wait-and-watch approach in the US, a big export market for JK Fenner.
Singhania was speaking on the sidelines of the annual conference of the Automotive Component Manufacturers Association of India (ACMA). Suppliers acknowledged that multi-sourcing allows customers to cut imports from a particular location if costs rise, which means higher landed costs from India will have an impact till the extra tariifs stay. The bigger pain point, however, is that decision-making and contract signings have slowed amid geopolitical uncertainty. Still, industry leaders expect exports to bounce back, supported by India's cost edge and the global shift to more resilient supply chains. Reports by McKinsey and ICRA have highlighted opportunities in ICE powertrain parts, where falling global volumes make high-cost locations less viable.
Ashok Minda, chairman of Spark Minda Group, pointed to wiring harnesses which his company exports as a category where India can win big. "It is labour-intensive, and with frequent design changes as vehicle features evolve, India is an ideal manufacturing partner," he said.
Vivek Vikram Singh, MD of Sona Comstar, which derives 60% of its sales from exports, added that India's current share is still very small compared to the European market opportunity, leaving ample room for growth when India and the EU sign a proposed free trade agreement (FTA).
New Delhi: India's $80 billion auto component industry is expected to face limited long-term impact from the heavy tariffs imposed by the US and Mexico due to comparatively low exposure to these markets, said industry executives on Friday.
Exports to the US and Mexico are currently modest-at about $6.6 billion and $500 million respectively each year. A little over half the exports to the US are already facing tariffs comparable to those levied on competing exporters. The bigger concern is over the $3 billion worth of commercial and off-road vehicle parts now facing 50% tariffs since the Trump administration moved to double the tariffs on most Indian goods from August 27.
Vikrampati Singhania, president of ACMA and MD of auto parts maker JK Fenner, said while customers have multi-sourcing agreements, these are for customised parts where technology and investments are already made.
"Any abrupt overnight changes will go against the strategic rationale of multi-vendor partnerships," he said, adding that customers have adopted a wait-and-watch approach in the US, a big export market for JK Fenner.
Singhania was speaking on the sidelines of the annual conference of the Automotive Component Manufacturers Association of India (ACMA). Suppliers acknowledged that multi-sourcing allows customers to cut imports from a particular location if costs rise, which means higher landed costs from India will have an impact till the extra tariifs stay. The bigger pain point, however, is that decision-making and contract signings have slowed amid geopolitical uncertainty. Still, industry leaders expect exports to bounce back, supported by India's cost edge and the global shift to more resilient supply chains. Reports by McKinsey and ICRA have highlighted opportunities in ICE powertrain parts, where falling global volumes make high-cost locations less viable.
Ashok Minda, chairman of Spark Minda Group, pointed to wiring harnesses which his company exports as a category where India can win big. "It is labour-intensive, and with frequent design changes as vehicle features evolve, India is an ideal manufacturing partner," he said.
Vivek Vikram Singh, MD of Sona Comstar, which derives 60% of its sales from exports, added that India's current share is still very small compared to the European market opportunity, leaving ample room for growth when India and the EU sign a proposed free trade agreement (FTA).
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