New Delhi, April 28 -- India's auto sector, contributing 2.3% to GDP and employing 1.5 million people, faces challenges from the US's 25% tariff on auto components, potentially leading to a $31 billion revenue loss. The Union Budget 2025 supports green initiatives and customs duty exemptions to bolster sustainable manufacturing.

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Companies focus on consolidation, premiumization, and diversification to meet evolving consumer demands. Rural infrastructure boosts consumption, while urban demand rises for premium products. To combat rising costs, firms streamline operations, adjust pricing, and maintain balanced margins. The sector's resilience depends on innovation an...