Collapse of Baltimore Bridge will have a bad impact on Indian automotive companies

Ahmedabad: America's busiest automotive port has been closed after the collapse of the Baltimore Bridge. Therefore, there is a possibility of widespread adverse impact on Indian automotive companies using it for exports.

According to the Automotive Component Manufacturers Association, the apex body of auto parts manufacturers in India, the US is the largest market for auto parts made in India. Which accounts for 28% of global shipments. During FY-23, Indian auto parts exports to the US stood at $5.62 billion i.e. Rs. 47000 crores.

Domestic companies Bajaj Auto, Royal Enfield and Mahindra & Mahindra are the largest exporters from India to the US. Apollo Tyres, one of the largest tire manufacturers in India, also exports to the US.

The US is the biggest market for Tata Motors-controlled British brand Jaguar, accounting for 26% of its global wholesales. For Mahindra & Mahindra, the US market is one of the largest markets for its tractors globally.

The US market is the largest automotive market not only in India but for many suppliers. Bajaj Auto ships medium engine capacity bikes to America. The US is one of the major export markets for niche motorcycle brand Royal Enfield. The company sells 10 motorcycles in the US, including the flagship Super Meteor 650 and Shotgun 650. Indian auto companies will have to use other routes for shipments to the US as major shipping routes have become idle. Due to which the cost will increase.