The automotive component sector in India is bracing for the impact of new US tariffs that could potentially reduce operating profits by 10-15%. According to ICRA, there is a forecast of a moderation in revenue growth for FY2026 as a result of the anticipated decline in exports to the United States. Despite these challenges, India is looking to capitalize on its cost competitiveness in the global market. The country is actively seeking relaxed export controls and enhanced access to technology from the US to mitigate the impact of the tariffs. This move is crucial for India to maintain its position as a key player in the automotive component sector and to continue its growth trajectory in the international market. The automotive industry is a vital part of India’s economy, and any disruptions in this sector could have far-reaching consequences. It is essential for Indian companies to adapt to the changing global trade dynamics and explore new opportunities for growth and expansion. With strategic planning and collaboration with international partners, India can navigate through these challenges and emerge stronger in the global automotive market.