Indian Auto Component Industry Grows Amid US Tariff Challenges and Trade Deficit

The Indian auto component industry grew 6.8% in the first half of FY26, reaching $41.2 billion, driven by strong domestic demand and exports to regions like Europe and Asia. However, exports to the US remained flat due to tariffs imposed by the US government, causing uncertainty in new contracts and slowing long-term orders. Imports, especially from China, rose sharply, leading to a trade deficit. Industry leaders view the slowdown as temporary, with hopes pinned on new trade agreements to offset US market challenges.