The move directly threatens nearly $2 billion of annual shipments to one of India’s most important overseas markets, and risks chipping away at the strong export momentum that automakers have built in Latin American countries like Mexico, Colombia and Chile, and even African nations like Nigeria and South Africa. While commerce ministry data showed that $2 billion as a fraction of Indian auto’s total exports of $31.4 billion in FY25 (cars $7.2 billion, two-wheelers $3.2 billion, components $21 billion), the Mexican tariff wave threatens to intensify headwinds blowing Indian auto’s way. On the one hand, the US has raised duties on Indian auto parts to 50%. And on the other, Chinese automakers are rapidly expanding their presence across regions like the Americas and Africa, with experts predicting high market shares for the Chinese in the near future in these areas. Notably, the Mexican Parliament on Wednesday approved the resolution to increase tariffs to up to 50% on automobile goods from the earlier range of 15-20% for passenger vehicles and two wheelers, and the earlier 0-35% for auto parts makers. The tariff proposal was first mooted by the Mexican government in September.Also Read | Bhavish Aggarwal tops up Ola Electric share pledges Companies like Maruti Suzuki, Hyundai, Bajaj Auto, Hero MotoCorp and TVS count the country as a major export hub. Among auto part makers, companies like Sona Comstar and Samvardhana Motherson have presence in the country, including a manufacturing plant. Mint’s request for a comment on the issue remained unanswered. However, Bajaj Auto had said earlier that it has won exemptions from the Mexican government. Rakesh Sharma, executive director at Bajaj Auto, said in its 7 November earnings call that Mexico remains the company’s largest Latin American market and noted that while tariffs have been raised to 35%, only two manufacturers — including Bajaj — qualify for a concessional rate. “Instead of 35%, our tariff will be only 5%. And because we have the ministry’s approval, etc., our plan will continue with 5%, all the others will increase to 35%,” he said. Experts like Ashim Sharma, senior partner and group head at Nomura Research Institute, said the export outlook for both auto part makers and vehicle makers has clouded due to developments in Mexico and the US. “However, the key thing will be how the attention for these automakers shifts to some of the new opportunities that are emerging in countries like Japan and the United Kingdom (UK),” Sharma said. To be sure, investors in the sector were not deterred by the imposition of tariffs, with Nifty Auto growing by 1.11% during Thursday’s trade as against 0.55% growth in benchmark Nifty index.Also Read | E20 petrol is going nowhere; govt is looking to blend more Headwinds building upApart from the tariffs from t in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. 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Mexico’s storm poised to hit India’s $2bn auto exports
