New Delhi, April 28 -- The Indian auto component industry faces fresh headwinds as newly imposed US tariffs threaten to dent exporters' earnings significantly, according to ICRA.

The rating agency estimates that the tariff-related impact could erode operating profits by Rs2,700-4,500 crore, equivalent to 10-15 per cent of the operating profits of auto component exporters and 3-6 per cent of the overall industry's operating profits.

ICRA projects that revenue growth for the Indian auto component sector, represented by a sample of 46 key players with combined annual revenues of over Rs3 lakh crore in FY2024, could moderate to 6-8 per cent in FY2026, down from the earlier forecast of 8-10 per cent.

This downgrade is largely attributed to ...