The recently imposed U.S. tariffs on Indian auto exports, including a steep 25% hike, have raised concerns across the industry. While these trade policy shifts may initially pose challenges for Indian automakers and the broader electric vehicle (EV) ecosystem, leaders from India’s automotive and clean energy sectors see a unique opportunity to transform the nation’s supply chains and global strategy.
The ripple effects of these tariffs are expected to be felt beyond automakers. Mr. Samrath Singh Kochar, Founder and CEO of Trontek, highlights the potential impact on battery manufacturers. “A decline in Indian auto exports could slow production for key manufacturers, affecting the demand for critical components like EV batteries,” Kochar notes. He adds that if tariffs extend to EV parts, battery exports could face additional cost pressures. Despite these challenges, Kochar is optimistic: “This shift presents an opportunity for India to double down on local supply chains, strengthen homegrown battery technology, and deepen partnerships within India’s evolving EV landscape.”
India’s growing self-reliance and localized production are echoed by other leaders, such as Mr. Akshay Shekhar, CEO & Co-Founder of Kazam. Shekhar sees India’s leadership in EV technology extending beyond hardware, into software innovations like smart charging and grid optimization. He emphasizes that initiatives such as Production-Linked Incentives (PLI) and Make in India are critical for fostering self-reliance and boosting domestic capabilities.
For automakers like Folks Motor, which exported $2.2 billion worth of auto components to the U.S. last year, the immediate challenge is clear: higher tariffs make Indian vehicles and components less competitive in the U.S. market. However, Mr. Nikhil Anand Khurana, MD and CEO of Folks Motor, believes this is an opportunity to diversify India’s trade partnerships. “We’re accelerating xEV (electric and hybrid vehicle) expansion and solidifying our footprint in regions like Europe, Latin America, and Southeast Asia,” says Khurana. He underscores the need for localized production to reduce dependency on any single market.
Not all impacts of the tariffs are negative. Mr. Vivek V Kumar, Managing Director of Lexicon World, sees a potential economic boost for India. “The tariff hikes make our U.S. exports cheaper compared to competitors, setting the stage for a significant increase in India’s exports to the U.S.,” he explains. Kumar predicts that this change will soon reflect positively in India’s stock market.
In essence, India’s automotive and EV ecosystem is at a crossroads. Industry leaders agree that these tariffs serve as a wake-up call to build a resilient and self-sufficient supply chain. By prioritizing domestic innovation, expanding into emerging markets, and leveraging digital energy solutions, India is poised to transform short-term trade challenges into long-term opportunities, solidifying its position as a global hub for next-generation mobility.