Indian Auto Component Stocks Slip as Trump’s Tariffs Take Effect

Shares of Indian auto component manufacturers

Motherson and BLW fell over 2% on March 4 as the U.S. imposed a 25% tariff on steel and aluminum imports from Canada and Mexico. The move dashed hopes of a trade reconciliation and raised concerns for Indian companies heavily reliant on exports to Mexico. India’s auto component exports to Mexico account for 3% of its total 21.2billionexports,amountingtoapproximately656 million. According to Elara Securities, these exports primarily include metallurgical components like forgings and castings. For Samvardhana Motherson, Mexico contributes 4% of its total revenue. The tariffs are expected to impact Indian manufacturers as U.S. original equipment manufacturers (OEMs) may adjust production strategies to counter rising vehicle costs. The development highlights the vulnerability of global supply chains to trade policy shifts, with Indian firms bracing for potential disruptions.