Mexico's Duty Hike Puts Pressure on Indian Auto Parts Exporters

Mexico's recent decision to increase import duties on Indian goods is likely to raise costs for India's auto component manufacturers. The Automotive Component Manufacturers Association of India (ACMA) is hopeful that ongoing talks between governments will mitigate the impact, amid Mexico’s significant share in India's export market.

Domestic auto component manufacturers are set to face heightened cost pressures as Mexico plans to increase import duties on Indian goods. This development was reported by the industry body, Automotive Component Manufacturers Association of India (ACMA).

Auto parts exports to Mexico in the fiscal year 2025 amounted to USD 834 million. In the first half of the current fiscal year, the exports have already reached USD 370 million. According to ACMA's Director-General, Vinnie Mehta, the revised import duties could escalate costs for Indian exporters significantly.

Despite this, ACMA remains optimistic that ongoing bilateral dialogues between the governments of India and Mexico will ensure continuity and stability in the burgeoning automotive trade. Mexico represents a significant market for India, accounting for 13% of India's passenger vehicle exports and 12% of two-wheeler exports.

(With inputs from agencies.)