Athira Sethu
Kochi, 9 Feb 2026
Auto ancillary stocks would be in the limelight once the markets open on Monday, February 9, in the wake of a positive development on the export front. The United States has agreed to extend preferential tariff treatment for certain automotive parts from India, a development that could bring some relief to Indian auto component makers.
According to a joint India–US statement, India will get a preferential tariff rate quota on automotive parts that fall under US-imposed tariffs. This may reduce the impact of high duties which has been affecting Indian exporters for some time. Lower tariffs can help Indian suppliers become more price competitive and bring greater stability to trade in the auto components sector.
Many auto ancillary companies from India have large exposure to the US market, which will invariably gain from this decision. For example, SAMIL generates almost 19% of its revenues from the US and also has subsidiaries in the US. It is difficult to quantify, however, as this revenue would be the net effect of both exports and local production.
Sona BLW Precision Forgings will also be at an advantage as the North American region accounts for approximately 41% of its revenues. However, the company already has manufacturing facilities in the US, which protects it from any sudden change in tariffs. This limits the risk as well as the gains.
Among the most exposed companies is Uniparts India, which derives about 55% of its revenue from the US market. It is believed that any ease in tariff-related pressures would be positive for the company, as improved demand visibility can support profit margins, although an exact export split is not well disclosed.
Bharat Forge earns about 22% of its sales from the US and over a third of its revenue comes from the Americas. Improved trade terms may make it more competitive, though the two manufacturing plants in North America already insulate the company to a large extent from uncertainty related to tariffs. Happy Forgings, where about 5% of total sales are pegged to the US, may benefit only a little, but a smoother flow of trade can help it even at the margins.
