Overview

• At ACMA’s annual convention, industry leaders framed easing tensions with China as a chance to deepen partnerships and gain technology access, noting China supplies 32% of India’s auto component imports.
• ACMA estimates $3.08 billion of the $6.6 billion in US‑bound auto parts will face a 50% duty under the Reciprocal Tariff Order after the Aug. 27 tariff hike, with the rest largely under a 25% rate set by Proclamation 10908.
• Suppliers reported slower decision‑making and contract signings as customers adopt a wait‑and‑see approach in response to US and Mexican tariff moves.
• Executives expect limited long‑term damage due to relatively low exposure to the US and Mexico and multi‑sourcing arrangements, while cost competitiveness supports a rebound in exports.
• The $80 billion sector is targeting growth via EU market access talks, greater localization and policy support, with the ACMA–McKinsey study projecting exports of $70–$100 billion by FY30 and a significantly larger industry by 2030.