Nomura sees pause in US reciprocal tariffs to benefit Indian auto ancillary firms

Samvardhana Motherson International

11/04/2025 06:49

** Analysts at Nomura believe the pause in U.S. reciprocal tariffs and escalating trade war between the U.S. and China can benefit Indian auto ancillary companies

** This supply chain restructuring can lead to strong gains for players such as Sona BLW SONB.NS, Sansera Engineering SASE.NS, Bharat Forge BFRG.NS and Samvardhana Motherson SAMD.NS - Nomura

** The shares climb 4%, 4.8%, 1.4% and 3%, respectively

** U.S. President Donald Trump on Wednesday temporarily paused reciprocal tariffs beyond 10% on most countries except China

** However, fully built imported autos will continue to have 25% duty while auto parts will be subject to 25% duty from May 3

** Brokerage sees lower interest rates, lower income taxes, potential cuts in oil prices to limit the downside risks in the auto ancillary space

** Since Trump's announcement of tariffs on April 2, SONB has fallen 12.5%, SASE has lost 14.5%, BFRG down 15.9% and SAMD has declined 14.5%, as of Wednesday's close

 (Reporting by Ashish Chandra in Bengaluru)

 ((ashish.chandra@thomsonreuters.com (+91 7982114624))