The 25% tariff imposed by the Trump administration for foreign vehicles, as well as auto components, is an opportunity for growth for the prosperity of the country’s electric vehicle, according to industry leaders.
The 25% tariff for foreign vehicles came into force on April 3, 2025, while the 25% tariff on auto components will take effect on May 3, even when the industry awaits clarification of the components involved in the tariff.
According to Prat Kamdar, co-founder and CEO of Neurone Energy, the tariff is likely to increase the cost of EV, which will encourage companies to use local production. Maharashtra, a key center for EV in India, plays an important role in both imports and exports within the sector. The newly announced 25% tariff for auto component by the US government is expected to affect global supply chains, potentially increasing the costs of producers relying on US imports, Kamdar notes.
“This situation can cause opportunities for Maharashtra’s EV Sector. Increased costs can make companies invest in local production, reducing dependence on imports and strengthening the domestic industry for EV in India,” Kamdar said.
According to Rohan Dujan, co-founder and CEO of Leafybus (Delhi-based electric bus operator), the tariff for imported cars and auto components can be a significant opportunity for India to strengthen its car supply chain and establish itself as a global car center. “With higher tariffs for Chinese car components, the growing industry for automatic components in India could enter the gap. This shift can increase exports and attract investment in local production. India can also use the opportunity by preserving the production of EVS,
In 2024 As per Export-Import Data from the Department of Commerce, a significant surge in EV exports was observed during the first Seven Months of the Calendar Year 2023. 246.3%, Rising from RS 7,988.62 Lakhhs in 2022 to RS 21,391.40 Lakhhs in 2023, Primeryly Driven by Strong Demand from Nepal and Europe Countries but Germany and Germany.
“The US car tariffs are increasing, India’s electric car sector has the main opportunity to capture a larger part of the US market, especially in the budget car segment. Leader of Tax for Partners and Automobile Services in EI India.
Alternative markets
Industry leaders note that tariffs can also be an opportunity for Indian auto components to explore new markets. “While higher tariffs on imports into the United States can increase costs and make Indian components of EV less competitive in that market, India has the opportunity to diversify and expand the global foot.
“This change can also attract global manufacturers to set production facilities in India, aligning the country’s initiatives in India and Aatmanirbhar Bahrat. By investing in local production, foreign companies can bypass tariff costs, while receiving access to the fast -growing market. Production “.
A policy support is required
With a 25% tariff published by the Trump administration, the call for policy support has increased louder among the stakeholders in the industry. According to Lefis Devan, the government can improve policies such as Fame II, GST’s lower rates for EV and promote local production through import duties and swim scheme.
According to Kamdar, government subsidies can help neutralize the impact of higher tariffs by reducing costs and consumers and producers. “Initiatives as an extension of the fame scheme and a production -related stimulating program (PLI) can play a key role in accelerating market growth. In addition, stimulations for local battery production and direct purchase subsidies can help stabilize demand and promote domestic production,
Source link
