Auto component manufacturers can see that up to £ 4.5 km CR income strikes this fiscal due to rates

New Delhi, April 28 (PTI), leading auto parts manufacturers can take an income hit of up to £ 4,500 crore in the current fiscal due to the fall in overseas consignments arising from the tariff-related impact, the rating firm ICRA said on Monday. ICRA expects the turnover growth of the Indian car component industry, represented by a sample of 46 car supplements with a total annual income of over £ 3 lakh crore in FY2024, to 6-8 percent in FY2026, compared to 8-10 percent, if in the mid-to-hoe repentance in the execution of the US, Tariff-Relet Revenue, it is an outline of SU, to SU, Tarik voting. a statement. The sharp increase in import tariffs recently imposed by the US is estimated to be charged with the entire supply chain with an incremental cost of approximately £ 9,000, which should be carried by US consumers, US importers and Indian exporters, it states. The extent to which the Indian exporters of auto parts share the costs will depend on their competitiveness and the price elasticity of the products exported. “Although the providers of car parts with whom ICRA perished with each other, indicate that most of the incremental costs would be transferred, as in any copper provider negotiation, the scope of passage depends on the supplier’s criticism, part of the business, competition and technological intensity of the components provided,” Incremental tariff costs must be incorporated by the Indian exporters of auto parts, ICRA estimates a earnings impact of approximately £ 2,700-4,500 crore, which is 3-6 percent of the car component industry operating and 10-15 percent of the car component exporters’ operating profit. The demand for the Indian car scoring industry still benefits from a diversified mix of end -user segments and geographical areas, with more than 70 percent of its income from domestic sales. The US was only about 8 percent of total operating income in FY2024. Exports of autoc components to the US grew at a compound annual growth rate (CAGR) of 15 percent during the FY2020-2024, ICRA noted. The US government has set a 25 percent tariff on the imported key car parts (engine, transmission, drive and electrical components) on an order of 26 March 2025, effective on May 3, 2025. About 65 percent of the car parts of India are estimated to fall under the 25 percent import tariffs. Previously, a 25 percent rate was imposed on the import of steel and aluminum content in auto parts. After the order of March 26, 2025, a reciprocal rate of 26 percent was imposed on the export of India to the US, on which there is a temporary break for 90 days, but with a 10 percent ad valorem duty still applicable. Products that fall under the US-Mexico canada arrangement (USMCA) are currently released. First published: 28 Apr 2025, 02:21 pm Ist