Will US Tariffs Impact Car Prices In India? SIAM DG Answers

India’s automobile industry is unlikely to face major repercussions from the recent announcement by the United States regarding increased tariffs on automobiles, asserted a top official from the Society of Indian Automobile Manufacturers (SIAM).

In an exclusive interaction with Republic Business, Rajesh Menon, Director General of SIAM, emphasized that India’s automobile exports to the U.S. remain minimal, making the impact of the new 15 percent tariff hike negligible for domestic manufacturers.

“Vehicles will not be impacted by the U.S. announcement (of 15 percent tariffs on automobiles). This is because there are very limited exports (from India) to the U.S. market. So, it should not impact any of the OEMs as we don't export much to that market. The announcement by Trump is on cars, which are shipped out in limited numbers,” Menon told Republic Business.

It is important to note that the U.S. government’s decision to increase tariffs on imported automobiles has raised concerns in various global markets. However, industry observers highlight that India’s major automotive exports are directed towards regions such as Africa, Latin America, and Southeast Asia, rather than the U.S.

“The limited volume of passenger car exports from India to North America further insulates Indian automakers from the potential financial strain that other exporting nations might experience,” Menon added.

Industry analysts, while echoing SIAM’s stance, note that Indian carmakers are primarily focusing on small cars, mini-SUVs, and mass-market two-wheelers—segments that are not significantly reliant on the U.S. market.

“Additionally, with India’s auto industry increasingly concentrating on electric mobility and regional markets, the new tariffs are unlikely to disrupt the industry's overseas sales,” stated Puneet Gupta, Director, S&P Global Mobility.