Build competitiveness, diversify export markets amid US tariff scare: ACMA

ACMA says US tariffs on select Indian imports, including auto parts, present short-term challenges but highlight the need for improved competitiveness and export diversity

The Automotive Component Manufacturers Association of India (ACMA) on Thursday said the United States government's decision to impose higher and additional tariffs on select Indian imports—including auto components—presents near-term headwinds for the industry but also reinforces the need to build competitiveness and diversify export markets.

 

“The recent decision by the United States to impose higher and additional tariffs on certain imports from India underscores the shifting landscape of global trade,” said Shradha Suri Marwah, President, ACMA. “While this development presents near-term headwinds for Indian exporters, it also underscores the importance of enhancing our sector’s competitiveness, strengthening value addition, and exploring new and diversified markets,” she added.

   

The United States remains a key trading partner for Indian auto component manufacturers. In FY25, it accounted for 27 per cent of India’s total auto component exports, which stood at $22.9 billion, and 7 per cent of imports, worth $22.4 billion.

 

ACMA expressed confidence that the long-standing trade relationship between India and the US would support constructive dialogue. “We appreciate the proactive stance of the Government of India in addressing the issue and remain hopeful that bilateral engagement will lead to constructive outcomes,” the industry body said.

 

At the same time, the association stressed the importance of enhancing domestic value addition and accelerating innovation within the sector. “ACMA remains committed to working closely with the Government and industry stakeholders to ensure India’s auto component industry remains competitive, resilient, and future-ready,” Marwah said.

 

ACMA represents over 1,100 manufacturers, accounting for more than 90 per cent of the organised sector’s turnover in the auto component industry. In FY25, the sector recorded a combined turnover of $80.2 billion and posted a trade surplus of over $450 million.