Opportunity in crisis: Duty on cars, auto parts likely to spur EV push

US President Donald Trump's imposition of 25 per cent import tariff on cars and automobile components could be an opportunity for India to reshape its automotive supply chains with a renewed focus on electric vehicle (EV) manufacturing, experts say.

 

Saurabh Agarwal, tax partner at EY India, said, “While India's direct car exports to the US are currently minimal, global tariff shifts offer a significant chance to reshape automotive supply chains. Our Make-in-India initiative, along with a renewed focus on EV manufacturing, positions us uniquely.”

 

India’s growing auto components industry could step in to fill the gap left by these shifts.