Shares of Samvardhana Motherson International Ltd. and Sona BLW Precision Forgings Ltd. fell over 2% on March 4, 2025, after the 25% tariffs imposed by US President Donald Trump on all imports from Mexico and Canada took effect today. Both stocks had previously recovered when the initial imposition of tariffs was paused for a month.
Impact on Indian Auto Component Industry
According to Elara Securities, India’s auto component exports to Mexico account for 3% of total exports, valued at $656 million out of the $21.2 billion total exports. These exports mainly consist of metallurgical components like forgings and casting products.
Company-Specific Impact
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Samvardhana Motherson:
- Mexico contributes 4% of its total revenue.
- Analysts are closely watching how OEMs (Original Equipment Manufacturers) might shift production bases to offset rising vehicle prices in the US due to the tariffs.
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Sona BLW:
- Mexico accounts for 2% of overall revenue.
- While most value addition occurs in India, Mexico is primarily used as an assembly base.
- If OEMs shift production to the US, Sona BLW’s operations could be redirected to cater directly to US facilities.
Investor Sentiment & Future Outlook
With the tariffs now in effect, investors are closely monitoring the long-term implications of these policy changes on the Indian auto component sector’s global supply chain and OEM strategies in North America.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
