Shares of Samvardhana Motherson Ltd. and Sona BLW Ltd. were back in focus on Tuesday, March 4, after the 25% tariffs imposed by US President Donald Trump on all imports from Mexico and Canada took effect today. Both stocks had earlier recovered after the initial imposition of tariffs was paused for a month.
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. The report noted that these exports mainly consist of metallurgical components like forgings and casting products.
Mexico contributes 4% of Samvardhana Motherson’s overall revenue, with analysts watching how OEMs (Original Equipment Manufacturers) might shift production bases to offset rising vehicle prices in the US due to tariffs.
For Sona BLW, Mexico accounts for 2% of overall revenue. While most of the value addition occurs in India, Mexico is primarily used as an assembly base. The Elara note suggested that if OEMs shift production to the US, Sona BLW’s operations could be redirected to cater directly to US facilities.
With the tariffs now in effect, investors are closely monitoring how these policy changes impact the Indian auto component sector’s global supply chain and OEM strategies in North America.
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