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Auto – Ancillaries the key beneficiaries

ICICIdirect Research 19 Feb 2026 DISCLAIMER

One set of auto components were exempt from reciprocal tariff and are subject to 25% blanket tariff under section 232 (PC, LCV and their components). There is no change here.
However, as per the initial trade deal framework, US will look to give India a preferential tariff rate under this section for some strategic components. Further developments are awaited.
Another set of auto components are subject to reciprocal tariffs and hence will witness decline in tariffs from 50% to 18%. Impacted companies cater to CV segment. Key beneficiaries are Bharat Forge, Balkrishna Industries, Steel strips wheels limited, ZF Commercial Vehicle Control Systems & Sansera Engineering among others.
On the OEM front, some media reports indicate phase wise import tariff reductions on ICE PVs with engine capacity >3,000 cc to 30% from 110% while keeping EV’s out of purview, which is neutral for the domestic PV OEM space. Point worth mentioning here is that cars in US are left hand drive while in India we have right hand drive vehicles, so unless volumes justify such kind of adjustment, US OEM might not push more vehicles in India.
It also slates elimination of tariffs on high end bikes such as Harley Davidson which again is likely to have minimal impact on premium motorcycle manufacturers in India given US OEM’s price range vs the Indian offerings

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