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India auto parts exports to US remain strong despite tariffs
The Economic Times··8 Jul
The US remained India's largest auto parts export market in FY26, accounting for 26 percent of 24 billion dollars in shipments, ACMA data on July 7, 2026, showed. Exports grew five percent despite US tariff tensions. Germany took nine percent and Thailand four percent. USTR is investigating Indian exporters under Section 301 for alleged unfair labour practices and excess capacity.
Prism
What It Means For You
- Auto parts workers depend on US export demand amid tariff uncertainty.
- Higher US tariffs could raise vehicle repair and manufacturing costs.
- India's manufacturing sector gains from US de-risking from China.
What's Happening
- US accounted for 26 percent of India's 24 billion dollar auto parts exports.
- USTR Section 301 investigation is underway into Indian exporters.
- ACMA reported five percent export growth in FY26.
Trade Context
- India is among 16 countries under USTR investigation.
- Sector revenues reached Rs 7.59 lakh crore in FY26.
- US firms are seeking suppliers without China-dependent chains.
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