Sundram Fasteners Sees Strong Class 8 Truck Orders Amid EPA 2027 Transition

Sundram Fasteners stated in its latest investor update that preliminary Class 8 truck orders during January–March 2026 almost doubled compared with the corresponding period last year. The increase was supported by improved visibility around EPA 2027 emission regulations, which are scheduled to come into force from January 1, 2027. The company also noted that an early-stage pre-buy cycle has started to emerge in the heavy truck segment as fleet operators and customers prepare ahead of the implementation timeline.

The company highlighted that tariff-related pressures in the United States have moderated to some extent, with reciprocal duties now reduced to 10%. However, Section 232 tariffs on steel and aluminium continue to remain elevated. According to the update, customers are currently compensating for a significant share of the tariff burden, helping reduce the overall impact on operations and profitability. The development provides some near-term stability for suppliers operating across the North American commercial vehicle ecosystem.

US Commercial Vehicle and Tariff Overview

The investor presentation also outlined the broader demand environment influencing the company’s commercial vehicle business and export operations. While regulatory certainty around emission norms is supporting order activity, elevated raw material tariffs continue to influence procurement and pricing decisions across the supply chain. Despite these challenges, the company indicated that reimbursement support from customers has partially offset the pressure created by higher duties on imported steel and aluminium products.

EV Orderbook and Export Market Trends

Sundram Fasteners also shared updates regarding its electric vehicle business pipeline in the United States. The company currently holds an EV orderbook valued at nearly INR 40 billion, although the expected production ramp-up has not yet materialized. Management expects meaningful scaling from FY2027 onward. In the domestic market, the company has secured EV-related business from major OEMs in India across several product categories, strengthening its long-term electrification positioning.

On the export front, EV momentum has weakened due to revised production outlooks from major global automakers. General Motors and Stellantis have both reduced their EV projections by nearly 50%, reflecting softer demand expectations in certain markets. Additionally, Stellantis has postponed selected EV programs, further affecting near-term export visibility for suppliers linked to these platforms. Despite the slowdown in exports, the company continues to maintain its long-term focus on EV component opportunities in both domestic and international markets.

Frequently Asked Questions

Why did Sundram Fasteners report higher Class 8 truck orders in 2026?
The company recorded stronger Class 8 truck preliminary orders due to improved clarity around EPA 2027 emission regulations and the beginning of a pre-buy cycle in the commercial vehicle market. Fleet operators and customers are preparing ahead of the new emission standards that will become effective from January 1, 2027. This regulatory certainty has encouraged early purchasing activity in the heavy truck segment. The trend is also benefiting suppliers connected to the North American commercial vehicle industry.

What is the status of Sundram Fasteners’ EV business growth?
Sundram Fasteners currently holds an EV orderbook worth around INR 40 billion in the United States market, although full-scale ramp-up is expected from FY2027 onward. The company has also secured multiple EV-related orders from major Indian OEMs across different product categories. However, export demand has weakened as General Motors and Stellantis reduced their EV production projections and delayed some vehicle programs. Despite this, the company continues focusing on long-term electrification opportunities.