India Offers Zero Tariffs on Steel and Auto Parts to the US — Five Companies Already in Position

India Offers Zero Tariffs on Steel and Auto Parts to the US — Five Companies Already in Position

India has proposed a bold concession in the ongoing trade negotiations with the United States: zero-for-zero tariffs on steel and auto parts. The offer, reported by multiple outlets on April 14, comes as New Delhi scrambles to finalise a bilateral deal before Washington potentially restores its full 50% reciprocal tariff regime by July, according to US Treasury Secretary Scott Bessent.

For retail investors, this isn't just trade diplomacy — it's a potential earnings catalyst for specific companies that already have US exposure, export infrastructure, or capacity ready to ramp. We searched corporate filings to find which ones stand to gain the most.

JSW Steel: Already on the ground in America — and bleeding

JSW Steel is the only major Indian steelmaker with significant manufacturing operations inside the US. Per their Q3 FY25 quarterly results, the company's EAF-based facility in Ohio produced 2,31,872 net tonnes of slabs during the quarter at 64% capacity utilisation. Sales volumes reached 63,817 net tonnes of HRC and 1,28,394 net tonnes of slabs. However, the Ohio operation reported an EBITDA loss of US$15.58 million, driven by lower sales realisation.

The company's Plate & Pipe Mill in Texas fared no better: 1,09,490 net tonnes of plates produced at just 43% capacity utilisation, with an EBITDA loss of US$2.29 million. A zero-tariff environment could dramatically change the economics for these plants by making Indian steel feedstock cheaper to import and improving price competitiveness of finished products in the US market.

Jindal Steel & Power: Capacity expansion timed perfectly

Jindal Steel is in the middle of an aggressive expansion at its Angul facility. Per their Q3 FY25 results, the company produced 1.99 million tonnes of steel and recorded gross revenue of ₹13,707 crore with an adjusted EBITDA of ₹2,133 crore. For 9M FY25, total revenue reached ₹42,519 crore with EBITDA of ₹7,088 crore and PAT of ₹3,149 crore.

What makes Jindal interesting is timing. India's steel exports fell 16.5% in the first nine months of FY25 to 4.58 million tonnes, while imports surged — India became a net steel importer. A zero-tariff deal with the US could open a major new export channel just as Jindal's expanded capacity comes online, potentially turning overcapacity from a margin risk into an export opportunity.

Motherson: 18% of revenue already comes from North America

Samvardhana Motherson International is perhaps the best-positioned auto component player for a tariff reduction. Per their FY25 annual report, the company's Modules & Polymer Products division derived 18.3% of revenue from North America. Consolidated revenue from operations reached ₹1,136,626 million (roughly ₹1.14 lakh crore), growing 15.17% year-on-year despite global light vehicle production declining 1%. Profit after tax surged 40% to ₹38,030 million.

The company follows a "3CX10" diversification strategy where no single country, customer, or component exceeds 10% of revenues. Zero tariffs on auto parts would make their North American revenue stream even more profitable without requiring additional investment — the factories and customer relationships are already in place.

Happy Forgings: Riding the US construction equipment wave

Happy Forgings, a specialist in forged auto and industrial components, offers a less obvious angle. Per their FY24 annual report, the United States has shown the "fastest growth in import shipments from India" for construction equipment — a key market for Happy's off-highway vehicle (OHV) components. The company noted that India's adoption of CEV-IV emission standards positions Indian OHV manufacturers to compete in developed markets.

The broader Indian auto component industry, per the filing, generated turnover growing at a 10.6% CAGR from FY23 to FY29, supported by government policies including 100% FDI under the automatic route and the PLI scheme expected to bring ~US$9.58 billion in capex by FY29. A zero-tariff regime would amplify these tailwinds for export-oriented forging companies.

Subros: Thermal components with room to grow

Subros, which makes thermal management systems for vehicles (AC compressors, condensers, evaporators), reported FY23 revenue of ₹2,806 crore — a 25% jump over the prior year, per their annual report. The passenger vehicle segment drove 26% growth, while commercial vehicles contributed 36% growth including truck and bus AC products.

However, the company flagged challenges from high commodity costs and foreign exchange volatility (USD/INR and JPY/INR). A tariff reduction on auto parts would benefit companies like Subros by making Indian thermal components more competitive against US and Japanese incumbents, particularly as American automakers look to diversify supply chains away from China.

What retail investors should do

This deal is not done yet. US Treasury Secretary Bessent's warning that full tariff rates could return by July creates both urgency and uncertainty. India's chief trade negotiator confirmed talks are ongoing. If the zero-for-zero tariff proposal on steel and auto parts gains traction, the companies listed above have the infrastructure, capacity, and customer relationships to benefit disproportionately.

Watch for two signals: first, whether the US responds positively to the zero-tariff offer in the next 30 days; second, how Q4 FY26 export volumes shape up for steel companies. The filings suggest the capacity is there — what's been missing is the market access. This deal could change that.

Data sourced from company filings on NSE via Xaro.