Following the United States tariff, Mexico has implemented tariffs of up to 50% on certain imported goods from India and other Asian countries.
As per media reports, Mexico’s decision to raise tariffs as high as 50% will affect US$ 1 billion (bn) worth of shipments from major Indian car exporters.
The tariff hike could force Indian automakers to reevaluate strategies reliant on Mexico, which is India’s third-largest car export market after South Africa and Saudi Arabia.
Here are three stocks that you could add to your watchlist following the tariff move by Mexico.
#1 Hyundai Motor India
Hyundai Motor India, a subsidiary of Hyundai Motor Company (HMC) is country’s leading automobile manufacturer.
The company’s model line-up consists of car models across different customer segments, including Grand i10 NIOS, i20, i20 N Line, Aura, Verna, Creta, CRETA N Line, CRETA Electric, Alcazar, Tucson and the all-electric SUV IONIQ 5.
According to a Reuters report, Hyundai shipped cars worth US$ 200 million (m) to Mexico. There could hence be some impact on the company on its exports to Mexico, once tariffs set in.
Financial Highlights of Hyundai Motor India
| Rs m | FY23 | FY24 | FY25 |
| Total Revenues | 603,076 | 698,291 | 691,929 |
| Operating Profit | 86,778 | 106,059 | 98,238 |
| Net Margin % | 7.8 | 8.7 | 8.2 |
| Profit After Tax | 47,093 | 60,600 | 56,402 |
Source: Equitymaster
On the financial front, the company reported Q2FY26 revenues of Rs 174,608 m vs Rs 172,604 m YoY. The net profits of Hyundai Motor India improved to Rs 15,723 m vs Rs 13,755 m YoY.
In Q2FY26, the company also recorded a growth in exports to Mexico of 11% YoY.
Coming to margins, Hyundai Motor India delivered yet another quarter of strong EBITDA margin performance at 13.9%, with favourable product & export mix along with cost optimisation efforts.
On the exports front, the momentum for the company been quite strong. In Q2, Middle East and Africa, has seen growth of 35%.
Moving ahead, the commencement of vehicle production operations in Pune plant could result in incremental cost impact, which may weigh on profitability in the near term.
However, the company remains confident that it will minimise the above impact & secure healthy margins through better operating efficiencies and cost control measures.
Overall, Hyundai Motor India is likely to benefit from GST cuts, expansion in EVs like IONIQ 5 and new models to capture rising demand. Capacity boosts and exports to certain destinations are likely to help. The imposition of tariffs by Mexico will remain an overhang.
#2 Maruti Suzuki India
Next on our list is Maruti Suzuki India.
Maruti Suzuki India is a subsidiary of Suzuki Motor Corporation, Japan, is India’s largest passenger car maker. The company is in the business of manufacturing and sale of passenger vehicles in India.
Maruti Suzuki’s product range extends from entry level small cars like Alto 800, Alto K10 to the luxury sedan Ciaz. The company has manufacturing facilities in Gurgaon and Manesar in Haryana and a state-of-the art R&D centre in Rohtak, Haryana.
Maruti Suzuki too is likely to be impacted by fresh tariffs from Mexico, as the company has exports to the country.
Financial Highlights of Maruti Suzuki
| Rs m | FY23 | FY24 | FY25 |
| Total Revenues | 1,184,099 | 1,418,582 | 1,529,130 |
| Operating Profit | 153,591 | 226,198 | 251,785 |
| Net Margin % | 7.0 | 9.5 | 9.5 |
| Profit After Tax | 82,637 | 134,882 | 145,002 |
Source: Equitymaster
On the financial front, the company reported Q2FY26 revenues of Rs 423,442 vs Rs 374,492 m YoY. The net profits of Maruti Suzuki improved to Rs 32,817 m vs Rs 30,552 m YoY.
Moving ahead, the company is seeing a strong traction in demand. In the month of October, the retail grew by about 20% overall.
The company is also likely to introduce more models going ahead. At the Japan Mobility Show recently, Global President of Suzuki Motor Corporation, T. Suzuki, made a mention of eight more SUVs to be launched in India by the turn of the decade, by FY31.
Maruti Suzuki also recently launched the Victoris model. According to the management there have so far been 30,000 bookings for the Victoris.
Overall, Maruti Suzuki India maintains a dominant position in the passenger vehicle market, supported by robust sales growth and strategic expansions.
The company targets doubling volumes to 4 m units by FY31. Future prospects hinge on new launches and rapid expansion in exports.
#3 Bajaj Auto
Next on our list is Bajaj Auto.
Bajaj Auto is one of the top two-wheeler manufacturers in the country. It’s also a major exporter from India.
The company presently holds 47.99% of KTM AG of Austria, through its 100% subsidiary Bajaj Auto International Holdings BV Netherlands.
According to reports, the company too is likely to be impacted by tariffs from Mexico as it has exports to the nation.
Financial Highlights of Bajaj Auto
| Rs m | FY23 | FY24 | FY25 |
| Total Revenues | 364,554 | 448,704 | 509,946 |
| Operating Profit | 76,381 | 101,976 | 119,421 |
| Net Margin % | 16.6 | 17.2 | 14.4 |
| Profit After Tax | 60,602 | 77,082 | 73,247 |
Source: Equitymaster
On the financial front, Bajaj Auto reported Q2FY26 revenues of Rs 157,347 vs Rs 132,473 m YoY. The net profits of Bajaj Auto improved to Rs 27,565 m vs Rs 19,657 m YoY.
The company has entered the e-rickshaw space. Bajaj Auto has announced its entry into the e-rickshaw category with the launch of Bajaj Riki.
Riki was piloted successfully in Patna, Moradabad, Guwahati and Raipur, and now expands to 100+ towns across UP, Bihar, MP, Chhattisgarh and Assam in Phase 1.
A focus of Bajaj Auto going forward will be on restoring competitiveness in the strategically important 125cc+ motorcycle segment.
The company also aims to unlock the full potential of the GoGo brand in the electric three-wheeler space, mirroring its leadership in the ICE category.
The new Chetak range will be executed with the intent to significantly step up volumes and market share. On the export front, Bajaj Auto expects the export recovery to sustain.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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