Which Indian companies will be impacted by Donald Trump's 25% auto tariff?

Indian firms including Tata Motors, Eicher Motors, Sona BLW, and Samvardhana Motherson are anticipated to be impacted by the 25% tariff that US President Donald Trump has put on foreign auto imports. These companies supply automobiles to the United States by exporting auto parts to China, Japan, South Korea, and Europe.

Although Jaguar Land Rover (JLR), a subsidiary of Tata Motors, has a significant market share in the US, the company does not export directly to the US. JLR's FY24 annual report states that 22% of their total revenues came from the US. According to the report, JLR sold about 400,000 cars globally in FY24, with the US ranking among its top markets.

The majority of the company's cars sold in the US are made in the UK and other foreign factories, which will now be charged a 25% duty.Since the US is a significant market for its 650cc models, Royal Enfield motorcycle manufacturer Eicher Motors may also be impacted. Samvardhana Motherson International Ltd., one of India's top producers of auto parts, is well-established in both Europe and the US.