India’s Auto Exports Hit New High as Global Demand Accelerates

India’s carmakers ended 2025 with record exports of about 858,000 vehicles, up 15% year-on-year, driven by strong demand from Africa, South America and West Asia. Strong manufacturing capabilities and cost competitiveness boosted growth, though future momentum hinges on trade policies. Automakers aim to double export share as India expands its global automotive footprint.

After navigating a volatile year for the global auto industry, India’s carmakers closed 2025 on a strong note by shipping an unprecedented number of vehicles overseas. Rising demand from regions such as Africa, South America and West Asia helped push exports to a fresh record, reinforcing India’s growing stature as a competitive manufacturing base for passenger vehicles.

According to industry estimates, Indian manufacturers exported about 858,000 cars, sedans and utility vehicles during calendar year 2025, marking a 15% increase compared with 2024. Senior industry executives attribute the surge to a more mature supplier ecosystem, improved cost efficiency, steady technological progress and increasing confidence among overseas buyers in vehicles produced in India.

While the export momentum is encouraging, executives caution that maintaining this trajectory will depend not only on manufacturing capacity but also on trade policy. Mexico, currently the third-largest market for Indian passenger vehicle exports, has announced a sharp increase in tariffs on several Indian goods starting January 1, 2026. Unless a bilateral trade agreement is concluded soon, higher duties could weigh on shipments to the Latin American nation.

Government officials indicated late last year that the framework for a trade pact with Mexico is close to being finalised, offering some hope of easing the impact on exporters.

Looking ahead, Indian automakers are setting ambitious targets. The industry aims to raise passenger vehicle exports to nearly 30% of total production over the next five years, a significant jump from roughly 15% in 2024. Executives also point out that India’s presence is gradually expanding beyond emerging economies into mature automotive markets such as Europe, Japan and Australia.

A stronger global role

“India’s automotive sector has reached a phase where its global influence is steadily increasing,” said Shailesh Chandra, president of the Society of Indian Automobile Manufacturers (SIAM), in a recent interaction. He noted that India already ranks as the world’s fourth-largest passenger vehicle manufacturer and the third-largest passenger vehicle market, positioning it to play a meaningful role as the industry transitions toward sustainable mobility. Chandra also serves as managing director of Tata Motors.

Maruti Suzuki continues to dominate India’s export landscape. The country’s largest carmaker reported a 21% rise in exports in 2025, shipping about 395,000 vehicles overseas. The company recently began exporting its first electric model, the e-Vitara, to European markets.

“Out of the 17 carmakers operating in India, Maruti Suzuki alone contributes around 46% of the nation’s total passenger vehicle exports,” said Rahul Bharti, senior executive director at Maruti Suzuki India. He added that India’s annual car exports have more than doubled over the past five years, increasing by roughly 445,000 units since 2020. Maruti Suzuki accounted for nearly 69% of that incremental growth.

The company’s key export destinations include South America, Japan, Africa, West Asia and Southeast Asia. In 2025, Maruti Suzuki shipped 18 different models to nearly 100 countries, including more than 13,000 units of the e-Vitara to 29 markets, largely across Europe. Bharti said the expanding export footprint underscores the strength of India’s manufacturing capabilities and the trust global customers place in Indian-made vehicles.

Other global automakers are also scaling up exports from India. Honda plans to use India as the sole production base for an upcoming electric vehicle. The company currently exports vehicles from India to 33 countries, spanning both left-hand-drive and right-hand-drive markets such as Japan, Mexico, the Middle East, South Africa, the Saarc region, the Caribbean and South America.

“These exports highlight India’s importance as a manufacturing and export hub for Honda and reaffirm our commitment to the ‘Make in India’ initiative,” said Kunal Behl, vice-president for marketing and sales at Honda Cars India. Honda shipped more than 36,000 units of models such as the Elevate, City and Amaze from India in 2025.

Hyundai Motor India also relies on the country as a production base for emerging regions including Africa, West Asia and Latin America. The Korean automaker recorded an 18% year-on-year increase in exports in 2025, sending out 186,528 vehicles. Since beginning operations in India, Hyundai has exported more than 3.8 million vehicles manufactured locally.

Globally, automobiles rank as the third most valuable exported product. For context, Indian carmakers exported around 744,000 passenger vehicles in calendar year 2024, underscoring how sharply overseas shipments accelerated in 2025. As manufacturers invest further in technology and capacity, and as trade negotiations evolve, India’s auto export story appears poised for its next phase of growth.