The automotive component sector in India is bracing for the impact of new US tariffs, which are projected to have a significant effect on operating profits. According to ICRA, the tariffs could potentially lead to a 10-15% reduction in profits, with a forecasted moderation in revenue growth for FY2026 as a result of the expected decline in US exports. Despite these challenges, India is looking to capitalize on its cost competitiveness in the global market. The country is actively pursuing relaxed export controls and enhanced access to technology from the US to mitigate the impact of the tariffs. This strategic approach aims to maintain India’s position as a key player in the automotive component sector despite the uncertainties posed by the new tariffs.