Trumps tariff: There are opportunities for the auto sector of the country at this time, so many challenges have also stood up. After the arrival of Trump, the difficulties are increasing even more. Trump is threatening high tariffs on the day, while Tesla’s EV is also ready to run in India. Let’s try to understand what the tariff tantram of Trump will have on Indian companies.
Trump’s tariff tantrum
US President Donald Trump has announced a 25 % tariff. He has said to impose tariffs on auto companies exporting in the US. The tariff on auto companies will be applicable from April 2. Many countries including India have been announced to impose tariffs. The US is also preparing to impose tariffs on semiconductor and pharma along with auto.
Effect on Indian auto companies
The US auto companies are likely to have a limited impact of 25 percent of the US tariffs. America has an export of about 17,000 trains from India. JLR and M&M vehicles from tariffs will become 10-15 percent expensive in the US.
Indian auto acceleration benefits
This tariff can benefit Indian auto acne companies. It is possible to benefit from Bharat Forge and Promotion Mother’s. India exports parts of over $ 6 billion. There will be opportunities in EV supply chains from Japan and Korea’s counter -tariffs. America can increase EV battery import from India. India’s EV battery market can be four times by 2030.
Tesla’s Entry: Whose profit, whom is harmed
Tesla EV’s entry in India is possible soon. With the arrival of Tesla, major opportunities are possible for auto analysis. Currently, 7 big listed companies supply auto parts to Tesla. Currently, Tesla does not intend to build an electric car in India. Currently plan to increase sourcing from Indian OEM. Tesla’s arrival OEM parts sourcing will increase, by 2025, the earnings from it can cross $ 1 billion.
Tesla’s first plant may be set up in Pune
According to media reports, Tesla can set up the first plant in Pune. The first plant in Chakan and Chikhali in Pune is possible. Chakan is one of the largest auto manufacturing hubs in the country. Chakan has plants of Mercedes-Benz, Tata Motors and Volkswagen.
Companies supplying parts to Tesla
Companies supplying Parts to Tesla include Sandhar Technologies, SKF India, Sundaram Fasner, VarroC Engineering, Suprajit Engineering, Sona BLW, Bharat Forge. They can benefit from Tesla’s entry.
At the same time, Tesla’s entry can create challenge for our EV making companies. EV has Tata Motors and M&M big players. Recently Maruti and Hyundai have also introduced their EV. If we look at the move of these auto companies on the 13-20 February move, M&M has seen a decline of 8 percent. At the same time, there has been a weakness of 0.44 percent in Tata Motors and 1.87 percent in Maruti Suzuki.
Tesla’s pricing will be important. Market experts say that the prices of Tesla vehicles will be important in India. EVS vehicles in India are less than anticipated. Last year, electric cars were sold around 1 lakh units. On the other hand, India has become necessary for Musk.
There are mostly signs of lethargy from the global market for Tesla. There is slowdown in China and Europe. India is a big market for auto
If we look at Tesla’s India plan, it has started recruitment in India. The company has taken out 13 vacancies. Service operation and delivery operations have been recruited. Recruitment has also started for service manager and store manager. Hiring has started for Mumbai. This step has been taken after the meeting of PM Modi and Elon Musk.
Currency Check: Indian rupee increased by 9 paise to 86.8525 against US dollar
Trump on Tesla’s India plan
Meanwhile, the US President Trump said that if Musk opens a factory in India, it is fine. But this is not right for the US. Selling a car in India for Tesla is almost impossible. India imposes 100 percent tariff on cars. Every country in the world takes advantage of us. The more tariffs that the country impose, the more US will also be installed
Mega Push to Make in India
Significantly, Mega Push is being given to Make in India in the country. In the new EV policy, import tax has been reduced to 15 per cent.
An investment of $ 500 million is required for low tariffs. Along with this, it is also necessary to set up a plant in India.
Anand Mahindra on Tesla’s entry
Meanwhile, on Tesla’s entry, Anand Mahindra has tweeted that we have always been ready for competition. Through the tweet, he said that since globalization in 1991, we have been asked the questions that how will you compete with Tata, Maruti, multinational companies? In the midst of these questions, we are still present today and will continue to work with passion to make our presence felt, if you get your encouragement, we will show it.