The Indian auto components sector, closely linked to the U.S. automotive and EV ecosystem, could be significantly impacted if reciprocal tariffs are enacted by the Trump administration. With the U.S. being a top market for several tier-1 suppliers, tariffs could disrupt export flows and delay orders from global OEMs.
Key companies with high U.S. exposure include:
- Sona BLW: ~40–45% US sales 💥
- Bharat Forge: ~25% US revenue
- Motherson (SMRP & Samvardhana): ~20% US revenue
- Minda Industries: ~20% US exports
- Endurance Technologies: ~25% US market
- Suprajit Engineering: ~20% US revenue
- Jamna Auto: ~20% US sales
- Sansera Engineering: ~25% US exports
- Balkrishna Industries (BKT): ~30% US revenue
- Motherson Sumi Wiring: ~20% US exposure
A prolonged tariff regime could not only impact current order flows but also affect long-term contracts and pricing with U.S.-based clients. Stocks like Sona BLW, which derive nearly half their revenue from the U.S., are particularly at risk.
Analysts warn that any trade friction may also dent investor sentiment toward the sector, especially for companies focusing on the electric and premium vehicle segments where the U.S. plays a critical demand role.
Bottom line: Auto component makers with high U.S. linkages must brace for potential headwinds. The next few weeks could be critical in shaping deal outcomes or tariff exclusions.
