Trump’s tariff: a convincing blessing of the EV industry in India

The 25 % tariff imposed by the Trump administration on foreign -made vehicles, as well as car components, is an opportunity for the growth of the ecosystem of prosperous electric cars in the country, according to the driving of the industry.

The 25 % tariff entered on foreign -made vehicles on April 3, 2025, while the 25 % tariff on car components will become valid as of May 3, even when the industry awaits an explanation on the components included in the tariff.

According to Pratik Kamdar, co -founder and CEO of Neurone Energy, the customs tariff is likely to increase the cost of EVS, which will encourage companies to use local manufacturing. Maharashtra, the main EV center in India, plays an important role in both imports and exports within the sector. The newly announced US government is expected to affect car components by the United States government on global supply chains, which may increase the costs of manufacturers that depend on American imports, as Kamdar notes.

“This position may increase the growth opportunities for the EV sector in Maharashtra. The increasing costs may drive companies to invest in local manufacturing, which reduces dependence on imports and enhance the local EV industry in India,” says Kamdar.

According to Rohan Diwan, co -founder and CEO of Leafybus (Delhi -based electric bus operator), a tariff for imported cars and car components can provide a great opportunity for India to enhance their car supply chain and establish themselves as an international electric cars center (EVS). “With the high customs tariffs on the components of Chinese cars, the growing component of the components of cars in India can intervene to fill the gap. This shift can enhance exports and attract investments in local manufacturing. India can also take advantage of the opportunity by increasing the production of EV components and batteries, and fading with government lending such as PLI production.

In 2024, auto components exports to India to the United States amounted to $ 8.2 billion, representing 27 % of the total automatic ingredient exports. According to export import data from the Ministry of Commerce, a significant increase in EV exports was observed during the first seven months of the calendar year 2023. From January to July 2023, EV exports increased by 246.3 %, and rising from 7,988.62 rupees of the first degree from 522. Like France and Germany.

“With the high tariffs of cars in the United States, the electric cars sector in India has a major opportunity to capture a greater share of the American market, especially in the budget car sector. In 2023, China reached exports and exporting components to the United States with an amount The hole was more than that. Sorb Agarawal, the auto and automotive leader in Ey India, says: “The players, and they extend for two years.”

Alternative markets

Industry leaders note that definitions can also provide an opportunity for Indian car components manufacturers to explore new markets. “While the high tariff for imports in the United States may increase costs and make Indian EV components less competing in this market, India has the opportunity to diversify and expand its global scope. Explore modern markets in Europe, Southeast Asia and the Middle East can help compensate for export losses and push sustainable growth,” says Kamdar.

“This shift can also attract global manufacturers to create production facilities in India, which are in line with the country’s initiatives in India and Aatmanirbhar Bharat. By investing in local manufacturing, foreign companies can exceed the costs related to tariffs while encouraging local production on local production.” He adds.

He needs to support politics

With the 25 % tariff announced by the Trump administration, the call for politics supported a higher voice among the stakeholders in the industry. According to Dewan’s Dewan, the government can enhance policies such as FAME II, low commodity and services tax rates, and promote local manufacturing through import duties and PLI.

According to Kamdar, government subsidies can help compensate for the impact of high definitions by reducing costs for both consumers and manufacturers. “Initiatives such as the extension of the fame scheme and the production -related incentive program (PLI) can play an important role in accelerating the market growth. In addition, the incentives for the production of local batteries and the support of direct purchase can help in stabilizing demand, promoting local manufacturing, and enhancing the ecosystem of India in India,” says Kamdar.