Mexico's 50% Tariff: New Roadblock for India's Auto Exports

• Mexico plans to impose tariffs of up to 50% on cars and components from countries without a free-trade agreement, including India.
• The new tariffs, effective January 1, 2026, will significantly impact Indian auto exports to Mexico, a major market.
• India shipped about 194,000 passenger vehicles worth almost $2 billion to Mexico last fiscal year.
• Major Indian auto exporters like Maruti Suzuki, Hyundai, Volkswagen, Nissan, Bajaj, TVS, Hero MotoCorp, and Royal Enfield will be affected.
• Industry experts suggest diplomatic engagement and exploring alternative export markets or shifting manufacturing bases to countries with FTAs with Mexico.

Why It Matters: Mexico's tariffs pose a major setback for India's auto exports and industry competitiveness.