ACMA Urges Export Market Diversification Amid US Tariff Concerns

The Automotive Component Manufacturers Association of India (ACMA) expressed its worry on Thursday about the U.S. government imposing increased higher additional tariffs on selected Indian imports/auto components. ACMA recognized that there were short-term distractions but noted the need to build sectoral competitiveness and develop diversified markets for exports.

“The recent announcement from the United States to impose higher and additional tariffs on certain imports from India highlights a changing scenario in global trade,” Shradha Suri Marwah, President, ACMA, said. “This creates short term challenges but at the same time indicates that we must enhance our competitiveness, increase domestic value addition, and diversify into different markets.” 

The US remains a key trade partner for India's auto component sector. In FY25, it accounted for 27% of India’s total auto component exports – worth $22.9 billion – and 7% of imports – worth $22.4 billion.

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ACMA remains optimistic that India and the US can continue their productive trading relationship through constructive engagement. The association welcomed and appreciated the Indian government's proactive steps to address this issue, and are hopeful for a positive bilateral resolution.

At the same time, ACMA highlighted the importance of pursuing greater domestic innovation and value addition in order to improve global competitiveness.

"ACMA stands ready to work in collaboration with both the government and industry so that India’s auto component sector is competitive, resilient, and future-ready," said Marwah. 

ACMA represents more than 1,100 manufacturers and accounts for over 90% of the turnover of the organised auto component sector. Industry turnover was recorded at $80.2 billion in FY25 with an export surplus of over $450 million.