The automotive component sector in India is bracing for the impact of new US tariffs, which are projected to have a substantial effect on operating profits, potentially decreasing them by 10-15%. According to a report by ICRA, there is an expected slowdown in revenue growth for the fiscal year 2026 as a result of the anticipated decrease in exports to the US. Despite these challenges, India is determined to capitalize on its cost competitiveness in the global market. The Indian government is actively pursuing measures to mitigate the impact of the tariffs by seeking relaxed export controls and enhanced access to technology from the US. This strategic move aims to bolster the resilience of India’s automotive component sector and maintain its competitiveness on the international stage. The industry players are closely monitoring the situation and are preparing to adapt to the changing dynamics of the global trade environment. Stay tuned for more updates on this evolving story.