Pune-based Bharat Forge, a leading player in the auto components industry, is making strategic moves to expand its US production capacity and strengthen its position in the global market. As the US prepares to impose a 25% tariff on imported automobiles, Bharat Forge is taking proactive measures to safeguard its business from potential disruptions. The company, which exports 20% of its auto components to the US, is now ramping up production at its US-based manufacturing facilities.

Bharat Forge’s Strategic Expansion in the Auto Sector

Chairman and Managing Director Baba Kalyani emphasized the growth potential in the automotive components segment, stating that Bharat Forge has ample capacity and significant opportunities to expand. The company is focusing on boosting local manufacturing, which will help it reduce reliance on exports and counter the impact of changing trade policies.

There is still uncertainty regarding the classification of Class 8 truck components under the new tariff policy. Kalyani pointed out that final clarity will only emerge once the customs order is officially released. However, he assured that switching auto suppliers takes 3-4 years, meaning the impact on business will not be immediate. Additionally, India’s ongoing trade negotiations with the US could influence the final outcome, potentially offering some relief to Bharat Forge.

Bharat Forge’s Defence Business on the Rise

Beyond its automotive expansion, Bharat Forge is witnessing substantial growth in the defence sector. The company recently secured a ₹6,900 crore artillery contract, with Bharat Forge’s share amounting to ₹4,100 crore. The contract is officially structured for execution over three years, but Kalyani stated that the company has the capability to complete the project in just two years once the initial approvals are completed.

With India’s artillery modernization program valued at ₹70,000 crore, Bharat Forge is positioned for long-term growth in defence manufacturing. The company is also actively participating in armoured vehicles and infantry combat vehicle programs, further strengthening its foothold in the defence industry.

Currently, Bharat Forge’s defence order book stands at ₹10,000 crore, showcasing its aggressive expansion in this high-growth sector.

Overseas Subsidiary Restructuring and Market Performance

Apart from expanding its operations, Bharat Forge is also restructuring its overseas subsidiary, with a resolution expected by the April-June 2025 quarter (Q1FY26). This restructuring is aimed at improving operational efficiency and financial performance.

On the stock market front, Bharat Forge currently holds a market capitalization of ₹55,348.32 crore, with its stock trading at ₹1,157.80 on the NSE as of 10:28 AM. The stock has gained 2% over the last year, reflecting investor confidence despite global uncertainties.

Future Prospects for Bharat Forge

Bharat Forge’s dual focus on automotive and defence expansion positions it strongly for future growth. With increasing localization efforts in the US auto component sector and a solid pipeline of defence contracts, the company is set for sustained expansion.

As trade dynamics continue to evolve, Bharat Forge’s strategic foresight and proactive decision-making will play a crucial role in ensuring long-term stability and profitability.

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