Transfer Pricing for Automotive & Auto Components
From component export pricing to technology royalties on global platforms, we help auto manufacturers and ancillary suppliers keep every related-party transaction defensible.
Global platforms, local manufacturing
Indian auto component makers are frequently embedded in global OEM supply chains — exporting parts to a parent, licensing designs, and importing kits — all priced under the watchful eye of both the TPO and the customs authorities.
Typical structure
A component manufacturer exports to its global OEM parent under a long-term supply agreement, pays royalty for design/technology, and is benchmarked on manufacturing margin.
Where Transfer Pricing applies in Automotive
Component Export
Manufacturing and exporting auto parts to a global OEM parent or group distribution entity.
Technology & Design Royalty
Licensing platform designs, engineering know-how or brand use from the parent.
CKD/SKD Kit Imports
Importing completely/semi-knocked-down kits from a related overseas manufacturer.
Safe Harbour Eligibility
Core and non-core auto component manufacturing eligible for pre-agreed Safe Harbour margins.
Tooling & R&D Cost Recovery
Cost contribution for shared tooling development or vehicle R&D programmes.
After-Sales & Warranty
Cross-charging of warranty and after-sales support costs within the group.
How these transactions are benchmarked
TNMM
Manufacturing margin benchmarking against comparable component makers.
CUP
Royalty rates and import pricing for kits and components.
Safe Harbour (Rule 10TA)
Pre-agreed margins for core/non-core auto component manufacturing and export.
CPM
Cost-plus benchmarking for tooling and R&D cost recovery arrangements.
Margins that hold up against both the TPO and customs
We benchmark manufacturing margins against genuinely comparable auto ancillary companies, test Safe Harbour eligibility against your actual segment classification, and align transfer pricing and customs valuation positions to avoid contradictory filings.
Manufacturing Benchmarking
Segment-specific comparable company analysis.
Safe Harbour Assessment
Core vs. non-core classification and margin modelling.
Royalty Defensibility
Technology licence rate benchmarking.
Customs Alignment
Consistent related-party pricing across TP and customs.
Our Automotive Transfer Pricing services
Benchmarking Study
Manufacturing margin analysis against auto ancillary comparables.
Safe Harbour Election
Eligibility review and filing under Rule 10TA.
TP Documentation & 3CEB
Complete Local File and Accountant's Report each year.
APA for OEM Supply
Long-term certainty for recurring component supply arrangements.
Supplying a global OEM from India?
Get your manufacturing margin and Safe Harbour position reviewed, free.