Now, Mexico to slap tariffs; may hit Indian car companies

Mexico's Senate Wednesday voted successful favour of a measure that imposes tariffs of 5% to 50% connected implicit 1,400 products from Asian nations, including India. The levies volition instrumentality effect from adjacent twelvemonth and deed products ranging from covering to car parts, with the monolithic output of Chinese factories emerging arsenic the legislation's focus.

For India, which has a commercialized surplus with Mexico, this could beryllium atrocious quality for automobiles and car parts. Annual exports of firms specified arsenic Volkswagen, Hyundai and Maruti Suzuki added up to astir $1.1bn with 90,000 units being shipped. Two-wheeler brands similar Royal Enfield, TVS, Bajaj and Honda whitethorn besides beryllium hit.

Mexico's determination to enforce 5-50% tariffs to impact India

After the US, present Mexico is erecting tariff barriers for countries with which it does not person a commercialized agreement, including India.Mexico's Senate connected Wednesday voted successful favour of a measure that imposes tariffs betwixt 5% and 50% connected much than 1,400 products from Asian nations, Bloomberg reported. The caller levies volition instrumentality effect starting adjacent twelvemonth and deed a wide scope of products from covering to metals and car parts, with the monolithic output of Chinese factories emerging arsenic the legislation's focus.For India, which has a commercialized surplus with Mexico, the determination could beryllium atrocious quality for automobiles and car parts.

Companies specified arsenic Volkswagen, Hyundai and Maruti Suzuki, whose exports added up to astir $1.1 cardinal successful 2024-25, shipments of astir 90,000 units whitethorn beryllium hit."India has been a beardown export basal for Skoda Auto Volkswagen for galore years and that continues to usher however we physique and technologist cars for planetary markets... Mexico has consistently been 1 of our important export markets, fixed rising request determination and traction of India-made models.

We are monitoring the situation. For the moment, we person travel to the decision that our concern activities are not affected," Skoda Auto Volkswagen said.Two-wheeler brands specified arsenic Royal Enfield, TVS, Bajaj and Honda are besides understood to beryllium exporting to the Latin American country. Besides, constituent exports to Mexico were estimated astatine astir $850 cardinal successful 2024-25 and immoderate of these were utilized by companies to manufacture vehicles headed to the US."India's car constituent exports to Mexico mostly comprise powertrain and driveline parts, precision forgings, chassis and brake systems, and cardinal electrical and after-market products. There is simply a beardown demand, particularly for forgings and precision machined components," Auto Component Manufacturers Association manager wide Vinnie Mehta told TOI.While higher taxes volition output astir $2.8 cardinal gross for the Mexican govt, it is seen to person facing US President Donald Trump's unit connected Mexican President Claudia Sheinbaum to trim imports from China."...(It) is simply a awesome of deepening planetary commercialized tensions, intimately linked to aboriginal bilateral agreements. This is apt to disrupt established proviso chains that utilized Mexico arsenic a basal to propulsion exports into US ... sectors specified arsenic car components, textile, and engineering goods are apt to beryllium impacted by these tariffs. The caller Mexico tariffs ranging from 35% to 50% connected these products volition marque Indian exports done the countries with US FTA much cost-competitive if Indian is capable to reason semipermanent bilateral agreements with those nations," said Saurabh Agarwal, taxation spouse astatine EY India.