NEW DELHI, March 17 -- Financial stress and capacity shortages among Western auto component suppliers are opening the door for Indian manufacturers to win new business from global automakers, even as tariffs raise the cost of exporting to the US.

During an analyst meet last week hosted by Mumbai-based brokerage Emkay Global, management of listed auto ancillary companies such as MM Forgings, Uniparts India and Nelcast said they are securing new orders from automakers in North America and Europe as those manufacturers widen their supplier base and look to India for additional capacity.

Indian manufacturers still retain a significant cost advantage, executives and analysts say, allowing them to compete for global orders despite tariff head...