India’s automotive industry has kicked off FY2025-26 with a remarkable boost in exports, achieving a 22% year-on-year (YoY) increase in the April-June quarter. This growth, driven by record shipments in passenger vehicles (PVs), robust two-wheeler demand, and increased momentum in commercial and three-wheeler segments, highlights renewed global appetite for Indian-made vehicles.
Export Highlights: April–June 2025
- Total auto exports: 1,457,461 units (up from 1,192,566 units in Q1 last year)
- Overall YoY growth: 22%
- Performance across segments:
Maruti Suzuki: Nearly Half the Pie
Maruti Suzuki, India’s largest carmaker, has once again cemented its leadership in auto exports:
- Passenger vehicle exports in Q1: 96,181 units
- YoY growth: Over 37% (from 69,962 units last year)
- Market share (PV exports): Over 47%, a historic high
- Commentary: Maruti Suzuki’s growth far outpaced the rest of the industry, which saw a modest 2% decline outside Maruti’s performance.
- Key drivers: Company officials attribute success to robust overseas demand and resilience across models, notably in utility vehicles and compact cars.
Other Major Exporters
- Hyundai Motor India: 48,140 units exported in Q1, up 13% from 42,600 units last year
Key Markets and Growth Drivers
Export growth was powered by:
- Continued stable demand from the Middle East and Latin America
- Revival in neighboring countries such as Sri Lanka and Nepal
- Increased shipments to Japan
- Boost from Free Trade Agreements (FTAs) including Australia
- Consistent demand in Africa, ASEAN, and emerging economies for two-wheelers
Segment-Wise Table of Q1 2025 Exports
| Segment | Q1 2024-25 Exports | Q1 2025-26 Exports | Growth Rate |
|---|---|---|---|
| Total (All Vehicles) | 1,192,566 units | 1,457,461 units | 22% |
| Passenger Vehicles | 180,483 units | 204,330 units | 13% |
| Two-Wheelers | 923,148 units | 1,136,942 units | 23% |
| Three-Wheelers | 71,479 units | 95,796 units | 34% |
| Commercial Vehicles | 15,788 units | 19,427 units | 23% |
Industry Reaction & Outlook
- The Society of Indian Automobile Manufacturers (SIAM) credits the export surge to stable global demand and strategic policy support, such as FTAs.
- Maruti Suzuki continues to set precedents, capturing nearly half of India’s car export market.
- The two-wheeler segment, led by demand in Africa, Latin America, and ASEAN, is rebounding sharply from recent global slowdowns.
- Despite the buoyant export numbers, domestic auto sales posted a slight decrease in Q1, highlighting the rising importance of exports for Indian manufacturers.
Conclusion
India’s automotive export sector is experiencing robust growth in FY2025-26, led by Maruti Suzuki’s record shipments and strong gains across two- and three-wheelers. Rising demand in overseas markets, strategic alliances, and favorable trade agreements have positioned India as a critical hub in the global auto supply chain. As domestic sales face short-term headwinds, exports are proving vital for sustained industry growth.
Photo Credit: rediff
