Mumbai: As a result of the US mutual tariff declaration, India’s leading auto component manufacturers may suffer revenue loss of Rs 4,500 crore in the current financial year.
The ICRA said in a statement that if the high tariff leads to the low-single points of auto component’s export revenue due to high tariffs, then the revenue growth of the auto component industry would slow down by 6-8 percent in FY 2026, while the first 8–10 percent was estimated.
The heavy tariff declared by the US will cost a burden of Rs 9,000 crore on the entire supply chain, which will cost US consumers, importers and exporters of auto parts from India.
Most of India’s exporters will put this burden on their final consumers. In FY 2024, the US will contribute eight percent to the total revenue of the auto component industry.
The ICRA further stated that between FY 2020 and 2024, India’s auto component exports have increased by 15 percent annually.
