Bharat Forge, a leading global manufacturer of forged and machined components, is ramping up its production of passenger car components at its U.S. facilities to mitigate risks from potential trade policy changes.

This move comes as the U.S. plans to impose a 25% tariff on imported automobiles, creating uncertainty for global auto exports. Bharat Forge currently exports 20% of its auto components to the U.S., but it remains unclear whether Class 8 truck components will be affected by the tariffs.

Chairman Baba Kalyani noted that switching auto suppliers typically takes 3-4 years, which could minimize immediate disruptions. Additionally, ongoing trade negotiations between India and the U.S. may influence the final outcome.

Beyond automotive components, Bharat Forge is expanding in the defence sector. The company recently secured a ₹6,900 crore artillery contract, with ₹4,100 crore allocated to Bharat Forge. It aims to complete this contract within two years instead of the official three-year timeline.

Bharat Forge’s defence order book stands at ₹10,000 crore, and it is poised to benefit from India's ₹70,000 crore artillery modernization program by participating in projects involving armoured and infantry combat vehicles.

The company is also restructuring its overseas subsidiary, with a resolution expected by Q1 FY26 (April-June 2025). Bharat Forge's current market capitalization is ₹55,348.32 crore, and its stock has gained 2% over the past year.

Agencies