Three stocks to watch as Mexico imposes 50% tariffs on India

December 12, 2025

Following the lead of the United States, Mexico has imposed tariffs of up to 50% on certain imported goods from India and other Asian countries.

According to media reports, Mexico’s decision to hike tariffs up to 50% will impact $1 billion worth of shipments from major Indian auto exporters.

The tariff hike could force Indian automakers to reevaluate strategies that rely on Mexico, which is India’s third-largest auto export market after South Africa and Saudi Arabia.

Here are three stocks you could add to your watchlist following Mexico’s rate change.

#1 Hyundai Motor India

Hyundai Motor India, a subsidiary of Hyundai Motor Company (HMC), is the country’s largest car manufacturer.

The company’s model range consists of car models for different customer segments, including Grand i10 NIOS, i20, i20 N Line, Aura, Verna, Creta, CRETA N Line, CRETA Electric, Alcazar, Tucson and the IONIQ 5 all-electric SUV.

According to a Reuters report, Hyundai has shipped cars worth $200 million to Mexico. So there could be some impact on the company on its exports to Mexico once the tariffs come into effect.

Hyundai Motor India Financial Highlights

Source: EquitymasterOn the financial front, the company reported Q2 26 revenue of Rs 174,608 mln versus Rs 172,604 mln YoY. Hyundai Motor India’s net profit improved to Rs 15,723 mln versus Rs 13,755 mln YoY.

In the second quarter of 2026, the company also recorded an 11% year-on-year growth in exports to Mexico.

In terms of margins, Hyundai Motor India delivered another quarter of strong EBITDA margins of 13.9%, with a favorable product and export mix and cost optimization efforts.

On the export front, momentum for the company has been quite strong. In the second quarter, the Middle East and Africa experienced growth of 35%.

Going forward, the start of car production at the Pune plant could result in an increase in costs, which could weigh on profitability in the short term.

However, the company remains confident that it will minimize the above impact and secure healthy margins through better operational efficiencies and cost control measures.

Overall, Hyundai Motor India is likely to benefit from GST cuts, expansion of electric vehicles like the IONIQ 5 and new models to meet rising demand. Capacity expansions and exports to certain destinations are likely to help. Mexico’s imposition of tariffs will remain a surplus.

#2 Maruti Suzuki India

Next on our list is Maruti Suzuki India.

Maruti Suzuki India is a subsidiary of Suzuki Motor Corporation, Japan, and is the largest passenger car manufacturer in India. The company is engaged in the production and sale of passenger cars in India.

Maruti Suzuki’s product range extends from entry-level small cars like the Alto 800, Alto K10, to the Ciaz luxury sedan. The company has manufacturing facilities in Gurgaon and Manesar in Haryana and a state-of-the-art R&D center in Rohtak, Haryana.

Maruti Suzuki is also likely to be affected by new tariffs from Mexico as the company exports to the country.

Maruti Suzuki Financial Highlights

Source: EquitymasterOn the financial front, the company reported a turnover of Rs 423,442 in FY26 against Rs 374,492 mln YoY. Maruti Suzuki’s net profit improved to Rs 32,817 mln versus Rs 30,552 mln YoY.

Going forward, the company sees strong demand growth. In the month of October, retail sales grew by approximately 20% in total.

The company is also likely to introduce more models. At the Japan Mobility Show recently, Suzuki Motor Corporation Global President T. Suzuki mentioned eight more SUVs to be launched in India by the turn of the century, FY31.

Maruti Suzuki also recently launched the Victoris model. According to management, there have been 30,000 bookings for the Victoris so far.

Overall, Maruti Suzuki India maintains a dominant position in the passenger car market, supported by robust sales growth and strategic expansions.

The company aims to double volumes to 4 million units by FY31. Future prospects depend on new launches and rapid expansion of exports.

#3 Bajaj Auto

Next on our list is Bajaj Auto.

Bajaj Auto is one of the largest two-wheeler manufacturers in the country. It is also a major exporter from India.

The company currently owns 47.99% of KTM AG of Austria, through its 100% subsidiary Bajaj Auto International Holdings BV Netherlands.

According to reports, the company is also likely to be affected by tariffs from Mexico as it exports to the country.

Financial Highlights of Bajaj Auto

Source: EquitymasterOn the financial front, Bajaj Auto reported a turnover of Rs 157,347 in FY26 versus Rs 132,473 mln YoY. Bajaj Auto’s net profit improved to Rs 27,565 mln versus Rs 19,657 mln 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 successfully piloted in Patna, Moradabad, Guwahati and Raipur, and is now expanding to over 100 cities in UP, Bihar, MP, Chhattisgarh and Assam in phase 1.

A focus of Bajaj Auto going forward will be to restore competitiveness in the strategically important 125cc+ motorcycle segment.

The company also aims to unlock the full potential of the GoGo brand in electric three-wheelers, reflecting its leadership in the ICE category.

The new Chetak range will be implemented with the intention of significantly increasing volumes and market share. On the export front, Bajaj Auto expects the export recovery to continue.

Investors should evaluate the company’s fundamentals, corporate governance and stock valuations as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such. Read more about our referral services here…