Auto Ancillary Stocks Slip Amid Tariff Concerns, Sona Comstar Chairman Passes Away

Indian auto ancillary stocks declined on June 13 following comments from U.S. President Donald Trump suggesting a possible hike in tariffs on imported vehicles. The move, aimed at promoting domestic manufacturing, raised concerns about renewed trade tensions and potential disruptions in global supply chains. Shares of Sona BLW, Samvardhana Motherson, Bosch, and Uno Minda fell up to 2% intraday, as investors weighed the impact of rising input costs and export headwinds. Sentiment around Sona BLW was further affected by the sudden demise of Sunjay Kapur, chairman of Sona Comstar, who passed away in London due to a heart attack at the age of 53. Trump hinted at increasing current U.S. auto tariffs — currently at 25% — to encourage automakers to build domestically, citing General Motors' recent $4 billion U.S. investment as an example. His remarks come amid heightened trade measures, including the recent doubling of steel and aluminum tariffs to 50%, and ahead of a July 9 deadline by which higher auto duties may take effect. The prospect of higher tariffs has sparked uncertainty for Indian auto component exporters, many of whom are deeply integrated with U.S. and European OEMs. Any escalation could pose risks to earnings and strain India’s auto export growth trajectory.