Indian engineering service firms slip as US tariffs seen hurting automakers' tech spend

Engineering, research and development (ER&D) firms, earning significant chunk of rev from tech projects executed for automakers, decline

Previously announced U.S. tariff of 25% on imported cars and light trucks comes into effect on Thursday; to raise costs for U.S. consumers, impact clients' tech spends, stymie production

KPIT Technologies KPIE.NS falls most, down 5.7%; Cyient CYIE.NS, L&T Technology Services LTEH.NS shed 3.6% and 2.6%

CYIE, LTTS derive 30%-33% rev from auto clients, while KPIE earns nearly all its rev from them

Analysts say demand for services in automotive/transport-related verticals will be hit