Shares of auto ancillary stocks witnessed selling pressure on Thursday after U.S. President Donald Trump imposed a 25% tariff and penalty on Indian exports. Stocks such as Sona BLW, Samvardhana Motherson, Bosch, Uno Minda, and other auto ancillary players declined up to 3% amid concerns over the impact of higher trade duties on export-driven revenue.

Among others, other auto-related stocks such as Bharat Forge, Balkrishna Industries, Ramkrishna Forgings, Steel Strip Wheels, JK Tyres, and Garware Hi Tech Films fell up to 4%.

On the other hand, frontline auto stocks such as Tata Motors, Maruti Suzuki India, Mahindra & Mahindra, Bajaj Auto, and Hero MotoCorp were trading marginally higher, paring early losses.

The NSE Auto Index was the worst performer among sectoral indices, falling as much as 0.8% in early trade. Meanwhile, benchmark indices BSE Sensex and NSE Nifty also declined up to 0.8% in the first hour of trade.

According to SBI securities, several auto and related companies are expected to feel the pinch of the recently imposed 25% U.S. tariff on Indian exports.

As per the report, Mahindra & Mahindra (M&M), which exports a major portion of its tractor volumes to the U.S., while Bharat Forge, which derives nearly 40% of its total revenue from the America, could face an impact of higher duty. Among others, Balkrishna Industries exports around 15% of its tyre volumes to the U.S., while Ramkrishna Forgings has a significant order book from North America.

The report noted that JK Tyre could also see impact due to its Mexican subsidiary, which exports significant volumes to the U.S. market. Steel Strip Wheels also sends nearly 63% of its total export volumes to the U.S.

Samvardhana Motherson, a major supplier of automotive components to U.S. clients, and Garware Hi-Tech Films, which generates 45% of its revenue from the U.S., may also see some headwinds, SBI Securities said in the report.

Starting August 1, the Trump administration has imposed a 25% tariff on Indian imports. This rate of tariffs higher than what street had anticipated, said Anubhav Sangal, Sr. Research Analyst at Bonanza.

“The auto industry is getting hit hard by these new tariffs. In 2024, India exported $2.2 billion worth of auto components to the U.S., while exports of fully assembled vehicles remained limited at just $10 million. These component shipments will now be subject to the full 25% tariff, affecting pricing and demand,” he said.

According to a recent report, India’s vehicle-related exports to the U.S. largely consist of auto parts and accessories, which amounted to $2.6 billion in 2023. This category is among India’s top 10 exports to the U.S. market.

Among the most affected companies are Sona BLW and Ramkrishna Forgings, both of which derive a significant portion of their revenue from U.S. exports. Bharat Forge and Tata Motors are also expected to face headwinds due to their exposure to the U.S. market, he added.

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