Pune auto hub braces for Trump tariffs, seeks government relief
Industry leaders fear that the move could affect exports and disrupt operations, putting the livelihoods of nearly five lakh people engaged in the region’s auto ecosystem at risk. Stakeholders are now urging both the State and Central governments to step in with supportive measures to help the industry navigate the challenge.
Home to auto majors such as Tata Motors, Mahindra & Mahindra and Bajaj Auto, alongside global giants like Volkswagen and Mercedes, Pune is one of India’s largest automobile clusters. Maharashtra alone accounts for 35.1 per cent of the country’s automobile output by value. The Pimpri-Chinchwad belt, at the heart of this hub, houses over 4,000 manufacturing and ancillary units that keep the supply chain running.
Industry associations are assessing the extent of the tariff’s fallout. “We are gauging the impact US tariffs will have on industries in the region. We have been in discussion with all stakeholders, and we are confident industries will emerge stronger through this challenge,” said Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA).
According to him, the forging sector within auto components is expected to be among the worst hit. The US market, once a major consumer of Indian forging products, may turn to Mexico and other suppliers. By contrast, the IT and IT-enabled services (ITES) sector has not yet reported any immediate impact.
Industrialists are calling for urgent policy interventions to maintain competitiveness. A reduction in power tariffs, they argue, would help lower production costs and sustain the export competitiveness of Indian engineering goods in the global market.
Micro, Small and Medium Enterprises (MSME) Federation is particularly anxious, warning that export declines could strain smaller players. It has urged the government to actively support diversification of markets, especially in Germany, Russia and other potential destinations, to offset the US shortfall.
The stakes are high, given Maharashtra’s significant role in India’s automobile exports. The State contributes 49 per cent of the country’s two- and three-wheeler exports, 27.4 per cent of motor vehicle and car exports, 22.3 per cent of auto components and parts and 11.6 per cent of auto tyres and tubes. Any disruption to this export engine could ripple through the economy.
As the Pune auto cluster awaits clarity on the full scope of tariff impact, the industry’s collective hope rests on swift government action to protect jobs, sustain manufacturing and open new global markets.
More Like This
Published on August 29, 2025
