Also read: Flat, festive and then furious: how 2025 gave an exciting plot twist to India’s automotive story
However, continuing this run will depend as much on trade diplomacy as on factory production. With Mexico – the third-largest destination for Indian auto exports – more than doubling tariffs on several Indian goods from January 1, 2026, outbound shipments could be affected unless the two countries reach a trade deal soon.
Officials indicated last month that the mandate for a trade deal with Mexico was likely to be finalized soon.
Indian automakers aim to increase passenger car exports to 30% of total production over the next five years, up from about 15% in 2024. India’s footprint has started to grow even in developed auto markets such as Europe, Japan and Australia, industry executives said.
Production capability
“The Indian auto industry has reached a stage where it is playing an increasingly influential role globally,” Shailesh Chandra, president of industry body Society of Indian Automobile Manufacturers (SIAM), recently told ET in an exclusive interaction. “We are already the fourth largest passenger car manufacturer in the world and the third largest passenger car market in the world.”Also read: Only 13% of ‘Made in India’ EVs are eligible for the government’s PLI scheme as the Chinese factor looms in the auto sectorChandra, who is also managing director of Tata Motors, said the Indian auto industry will play an “important role in multiple economies” as the sector navigates the transition to sustainable mobility.
Maruti Suzuki – which recently shipped its first electric car, the e-Vitara, to Europe – reported a 21% increase in total exports to 395,000 units in calendar 2025.
“Today, of India’s 17 automotive companies, only one company, Maruti Suzuki, accounts for 46% of India’s total exports,” said Rahul Bharti, senior executive director, Maruti Suzuki India.
He noted that India’s annual car exports have more than doubled in the last five years, at about 445,000 units, compared to 413,000 in the year 2020. Of this incremental growth, Maruti Suzuki accounted for 308,000 units, or 69%.
Bharti said the company’s key markets are South America, Japan, Africa, West Asia and South East Asia.
Maruti Suzuki shipped 18 models to around 100 countries in 2025. It exported over 13,000 e-Vitara units to 29 countries, mainly in Europe, Bharti said.
He said the rising exports “reflect India’s manufacturing strength and the confidence of customers around the world.”
Honda is also considering scaling up exports, with India being the sole production center for its yet-to-be-launched EV.
“We currently export to 33 countries across both left- and right-hand drive markets, including Japan, Mexico, the Middle East, South Africa, SADC countries, the Saarc region, the Caribbean and South America, reinforcing India’s role as a major manufacturing and export base for Honda and our commitment to the ‘Make In India’ initiative,” said Kunal Behl, vice president (marketing and sales) at Honda Cars India.
The Japanese automaker exported more than 36,000 units of Elevate, City and Amaze from India in 2025, he said.
For Korean car giant Hyundai, India is the production center for emerging markets such as Africa, West Asia and Latin America. In 2025, Hyundai Motor India’s exports rose 18% year-on-year to 186,528 units. In total, it has exported more than 3.8 million Indian-made cars since its inception.
Cars are the third most valuable export product in the world.
By calendar 2024, Indian automakers had shipped 744,000 passenger vehicles.
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