Updated 28 August 2025 at 18:45 IST
Auto Component Stocks Slide as Trump’s 50% Tariffs Hit Indian Exports
Indian auto component stocks slumped on NSE and BSE after Trump doubled tariffs on imports from India to 50%. Samvardhana Motherson, Bharat Forge, Bosch, and Sona BLW led losses. Analysts warn of export risks and margin pressure, though firms with overseas units may cushion the impact.
Shares of leading Indian auto component makers fell on Thursday as US President Donald Trump’s decision to double tariffs on imports from India spooked investors and raised concerns over the sector’s export outlook.
The 50% duty—up from the earlier 25% levy—now covers nearly half of India’s $6.6 billion auto component exports to the U.S. Analysts warn that the move could dent competitiveness, disrupt supply chains, and squeeze margins for suppliers catering to global automakers.
Market Reaction
On the NSE, Samvardhana Motherson International Ltd. slipped 2.1% to Rs 92.40, while Motherson Sumi Wiring India Ltd fell around 1% to Rs 41.60 on both NSE and BSE. Shares of Bharat Forge slipped 1.4% to around Rs 1,217 on the NSE, while Bosch Ltd. eased 0.7% to Rs 39,225. Sona BLW Precision Forgings was among the sharper losers, shedding over 3% to trade near Rs 432.
Traders said concerns are particularly acute for companies with heavy US exposure such as Bharat Forge and Sona BLW Precision Forgings, which derive a significant share of revenues from North America.
Why it matters
The US. accounts for nearly 27% of India’s auto component exports. Industry hubs across Manesar, Pune, and Chennai could feel the ripple effects, particularly in precision forgings, wiring harnesses, and drivetrain component, as per industry analysts.
Global brokerages have flagged the need for Indian firms to diversify markets, strengthen domestic supply chains, and accelerate localisation to offset the policy shock. Some companies, including Sona Comstar and Motherson, already operate overseas units that may provide partial relief.
Business Outlook
While the long-term fundamentals of India’s $80 billion auto components industry remain intact, the tariff hike underscores the risks of concentrated export dependence. Market watchers say near-term volatility in component stocks is likely until trade negotiations offer clarity.
Published By : Avishek Banerjee
Published On: 28 August 2025 at 17:26 IST