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The impact of tariffs on Mexico’s economy will also likely ripple through to the Indian scooter makers, who count the Latin American country as a key market.“>
US President Donald Trump’s threats of steep tariffs on Mexico and his planned curbs on immigration present a two-pronged threat to Indian auto parts suppliers and their ambitions to expand in their biggest export market.
While Trump last week delayed by 30 days his plans to impose 25% tariffs on imports from Mexico, Indian parts makers who have factories there are bracing for the disruption if the US President eventually implements the higher tariffs after this brief pause.
Shifting production to the US isn’t a simple response, because Trump’s planned immigration crackdown could choke off the supply of migrant labor the factories rely on. Rejigging supply chains and setting up new factories can also take years.
“While every American state has extended full support, the common factor that has been concerning us is the availability of skilled manpower,” said F.R. Singhvi, joint managing director at Sansera Engineering Ltd.
Sansera, which has been evaluating a US facility for connecting rods for more than a year, supplies US auto and aerospace manufacturers including Airbus SE, Daimler Truck Holding AG and General Motors Co.
The US is the biggest export market for Indian auto parts makers, with sales of $3.7 billion for the six months ending Sept. 30. India firms, which still mostly make components for combustion engines, see opportunities in the US as suppliers to the likes of Ford Motor Co. and GM shy away from investing in older technology as the global auto industry pivots to electric vehicles.
The impact of tariffs on Mexico’s economy will also likely ripple through to the Indian scooter makers, who count the Latin American country as a key market.
“Mexico’s economic health is important as it is our largest market after Nigeria,” said Rakesh Sharma, executive director at Bajaj Auto Ltd., the biggest exporter of two-wheelers from India.
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US President Trump’s threats of tariffs and immigration curbs pose significant risks for Indian auto parts suppliers. The potential tariffs on Mexican imports and reduced migrant labor availability could hinder Indian firms’ expansion in their primary export market, impacting production and supply chains.
- Updated On Feb 8, 2025 at 07:57 AM IST
Read by: 100 Industry Professionals
Read by 100 Industry Professionals
The impact of tariffs on Mexico’s economy will also likely ripple through to the Indian scooter makers, who count the Latin American country as a key market.“>
US President Donald Trump’s threats of steep tariffs on Mexico and his planned curbs on immigration present a two-pronged threat to Indian auto parts suppliers and their ambitions to expand in their biggest export market. While Trump last week delayed by 30 days his plans to impose 25% tariffs on imports from Mexico, Indian parts makers who have factories there are bracing for the disruption if the US President eventually implements the higher tariffs after this brief pause.Shifting production to the US isn’t a simple response, because Trump’s planned immigration crackdown could choke off the supply of migrant labor the factories rely on. Rejigging supply chains and setting up new factories can also take years.“While every American state has extended full support, the common factor that has been concerning us is the availability of skilled manpower,” said F.R. Singhvi, joint managing director at Sansera Engineering Ltd.
Sansera, which has been evaluating a US facility for connecting rods for more than a year, supplies US auto and aerospace manufacturers including Airbus SE, Daimler Truck Holding AG and General Motors Co.
The US is the biggest export market for Indian auto parts makers, with sales of $3.7 billion for the six months ending Sept. 30. India firms, which still mostly make components for combustion engines, see opportunities in the US as suppliers to the likes of Ford Motor Co. and GM shy away from investing in older technology as the global auto industry pivots to electric vehicles. The impact of tariffs on Mexico’s economy will also likely ripple through to the Indian scooter makers, who count the Latin American country as a key market.
“Mexico’s economic health is important as it is our largest market after Nigeria,” said Rakesh Sharma, executive director at Bajaj Auto Ltd., the biggest exporter of two-wheelers from India.
- Published On Feb 8, 2025 at 07:53 AM IST
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