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Auto component firms bank on localisation, diversification amid tariff woes

With global trade uncertainties rising, Indian auto component manufacturers are focusing on localisation, diversification, and policy support to shield operations and tap fresh export opportunities

auto component industry, Kinetic Engineering, SAMIL, Samvardhana Motherson, localisation, trade tariffs, global trade, India auto exports, OEMs, auto components, electric vehicle components, automotive industry India, FY25, FY26, ICRA auto sector, di
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Diversification is a gradual process due to the highly customised nature of products tailored to individual OEMs, as transitions typically take 8 to 24 months and require significant capital investment

Anjali Singh Mumbai

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As the global trade landscape faces potential shifts with evolving tariff policies, Indian auto component manufacturers are proactively strategising to mitigate adverse impacts. From increased localisation to strategic market diversification, industry leaders are recalibrating operations to maintain resilience in an evolving global trade environment.
 
Leading players such as Kinetic Engineering and Samvardhana Motherson International (SAMIL) are placing strong emphasis on localisation, long-term partnerships, and a cautious yet opportunistic outlook on market diversification.
 
Ajinkya Firodia, vice-chairman and managing director of Kinetic Engineering, said the company has long embraced localisation as a core philosophy, with over 97 per cent of its components