The automotive component sector in India is bracing for a major blow as new US tariffs loom on the horizon. According to ICRA, these tariffs could slash operating profits by 10-15%, leading to a significant impact on the industry. The forecast for FY2026 also paints a grim picture, with a projected slowdown in revenue growth due to the expected decline in exports to the US. However, India is not backing down in the face of these challenges. The country is looking to capitalize on its cost competitiveness and is actively pursuing relaxed export controls and increased access to technology from the US. This strategic approach aims to mitigate the adverse effects of the tariffs and bolster the resilience of the automotive component sector in India. The industry is closely monitoring developments and exploring all possible avenues to navigate through these turbulent times.