Donald Trump Tariffs Boon for Auto Industry, claims Skoda Auto VW official

Skoda Auto Volkswagen India Private Limited (SAVW), the Indian arm of the Volkswagen Group, expressed its opposition to the new reciprocal tariffs imposed by the Trump administration, which are currently paused for 90 days for non-retaliating countries. Despite this, the company believes the move could present “long-term opportunities” for the industry.

Piyush Arora, Managing Director of SAVW, explained to PTI that while the company does not support the tariffs, discussions are ongoing about opening markets, especially in India, through bilateral or free trade agreements (FTAs).

Arora, who has previously worked with Mercedes-Benz India, highlighted the group’s commitment to "free trade" and the exchange of technology for customer benefit. He noted the uncertainty surrounding recent US tariff changes but also pointed out that these developments could accelerate the long-discussed FTAs between India and the European Union.

Also Read: Donald Trump Announces 25% Tariffs On All Foreign Made Automobiles | Republic World

Arora believes India stands to gain from lower tariffs in the future, particularly through European trade agreements and the EU-India FTA. He acknowledged short-term challenges, particularly higher tariffs on Indian auto components exported to the US but remains optimistic that new opportunities may emerge in the long run.

The company is also dealing with a Rs 11,000-crore tax notice concerning alleged customs duty fraud over its import of cars as completely knocked-down (CKD) units. Arora emphasized that the company has always followed Indian and global laws, and the classification dispute has been ongoing despite the company's consistent practices for the last 20 years. Authorities allege that SAVW declared car parts as individual components to pay lower duties. The company is challenging the tax notice in court.

Additionally, SAVW launched the new Volkswagen Tiguan R-Line SUV at an introductory price of Rs 49 lakh.