According to Nomura, no step will reduce or eliminate import duties on US auto components or even any step on US auto components, as the existing tariffs are relatively low and the risk of increased imports from the US is low.
The Trump administration in the US is pushing India forward to remove tariffs on imported cars as part of an upcoming trade deal. Reports show that the government is deliberately taking measures to avoid punitive action from Washington.
India Levies imported taxes up to 110% on fully manufactured cars, while the US charges 2.5%. The auto trade between India and the United States was about $ 100 million in 2023, and decreased.
Nomura analysts said in a note, “Indian suppliers are capable of building a proper scale with leadership in some products such as EV Differential, Bevel Gear and Crankshaft.”
They expect any low auto tariff to increase the competitive intensity in the Indian passenger car and there will be a premium motorcycle segment at a high end.
(Tagstotransite) Automobile – Passenger Car (T) Trade (T) Tariff
