Page 9 - ITLN May-June 2025

With China facing higher
tariffs and potential
trade restrictions, Indian
suppliers can capture a
larger share of the US
market, especially if
India and the US reach a
favourable settlement
on tariffs.
Om Vijayvargiya
Schaeffler India

He added, “Indian authorities On whether India could capitalise grow further, expand their footprint not
are actively engaging with their US on the growing US-China trade rift, only within India but also globally, and
counterparts to resolve these issues he added, “Yes, I would wait and are looking at inorganic expansions to
and expand market access.” watch that.” get into different product lines.”
According to Mandar Vaidya, Director However, Vaidya is clear that But he also pointed to systemic
– Materials Management, Region India India must play to its strengths. weaknesses that could hamper
at ZF Group, the opportunity is clear— “In automotive, what makes sense progress. “What we lack is the
but so are the challenges. for India is not on the stamped scalability that China has. We always
“The US will have to kick-start components or panels. What makes look at what the returns are; we have
development or revamp their sense for us is where we add more to have a positive business case before
manufacturing industry,” said Vaidya. value, which is the engines and we invest. In China, they are ready to
“They will have to start, in some transmission components,” he put in capacities and capabilities in
cases, with setting up manufacturing explained. “If you look at panels, they anticipation of demand. So, when the
bases, and then we can start are voluminous parts, so transport volumes are ready to come in, they're
production. People have to be ready costs would be a negative contributor ready. We, on the other hand, take one
to do those things. If people are not to our competitiveness. Focus on year, one and a half years, to get ready.”
ready, then they'll have to put in components which are heavier and have On the strategic importance of the
automations or robotics, which is higher value addition compared to the US market for Indian exporters, Vaidya
also a further investment and raw material cost—engine components is pragmatic. “We can grow significantly
takes time.” and transmission components fit in in the US market. They have too much
When asked how dependent the US here. The arbitrage for India would be dependency on China right now, and
currently is on the Indian automotive better in those cases.” they would like to reduce it if given a
industry, Vaidya responded candidly: When it comes to India’s readiness choice. Even if tariffs are not there, they
“Not too much. But you have a huge to seize these opportunities, Vaidya understand they have to depend on
gap there if we compare ourselves with was cautiously optimistic. “Indian China right now.”
China. That is why I was looking at that suppliers are quite stable financially However, he cautioned that India is
as an opportunity to grow exports.” right now, and most of them want to not the only alternative. “When people
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