Trump’s 25% Truck Tariff May Spare Indian OEMs, But Component Makers Remain Cautious

In a bid to protect American manufacturers from foreign competition, U.S. President Donald Trump announced a 25% tariff on medium- and heavy-duty trucks imported into the United States, effective November 1.

While Indian manufacturers like Tata Motors and Ashok Leyland have a strong presence in Southeast Asian and certain African countries, how exposed are they to the North American market?

SEBI-registered analyst Vishal Trehan breaks down the impact of the proposed tariff on Indian companies.

Analyst on India’s exposure to the US trucking market

India currently has no direct exports of medium- or heavy-duty trucks to the US, contrary to some recent claims. Major Indian OEMs, such as Tata Motors and Ashok Leyland, primarily focus on the domestic market and emerging regions, including Africa, the Middle East, and Southeast Asia. Similarly, Eicher Motors (through its Volvo Eicher joint venture) has a presence in commercial vehicles but does not directly export trucks to the US.

However, Indian manufacturers have indirect exposure through the export of auto components to global OEMs that build trucks for the US market. Companies like Samvardhana Motherson, Sona BLW, Bharat Forge, and Suprajit Engineering supply critical components, including axles, gears, and wiring harnesses. These firms could face margin pressure if US-based clients shift sourcing or pass on tariff-related costs, Trehan said.

The proposed 25% tariff on imported autos and components would have minimal direct impact on Indian OEMs, as they do not ship finished trucks to the US.

However, the indirect impact could be moderate for component exporters like Sona Comstar, which gets 43% of its revenue from the US market, and Bharat Forge (38%), which are the most exposed.

Firms like Motherson may offset the impact through their localized US operations, while others are diversifying into Asian markets to mitigate risks, Trehan added.

Stocks Watch

Among the decliners, Samvardhana Motherson was down 1.1% at ₹105, while Suprajit Engineering was trading 1.1% lower at ₹455. Sona BLW shares were largely unchanged at ₹414.4, while Bharat Forge climbed up 0.2% to ₹1,237.8.

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

Share

·

Add us on