Auto and auto component stocks surged on Tuesday, April 15, after U.S. President Donald Trump indicated a possible pause or temporary exemption on the 25% import tariffs imposed on foreign vehicles.

As of 2:22 pm, Samvardhana Motherson International led the gains, rising 7.13% to ₹126.66, followed by Bharat Forge, which climbed 6.02% to ₹1,062.50. 

The Nifty Auto Index was up over 3.44%, hitting an intraday high of 21,276.30, with all of its constituents trading in the green.

Trump is considering offering temporary relief for automakers from the recently announced import duties. The move may be aimed at giving companies time to adjust their global supply chains, particularly those with production operations in countries like Mexico and Canada.

The development follows rising concerns among industry groups and investors about the economic fallout of blanket import tariffs, especially for companies dependent on cross-border manufacturing.

In March 2025, Trump announced a 25% tariff on all vehicle imports into the U.S., calling it a strategy to boost domestic production. The tariffs, which took effect from April 2, were expected to impact nearly half of all vehicles sold in the U.S., including several American-branded models assembled overseas.

High import duties could result in higher manufacturing costs, price hikes, and reduced consumer choice. The policy has also raised concerns about potential trade frictions with major car-exporting nations, including Japan, South Korea, and EU members.

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