India Breaks Into Japan's Top 5 Car Export Markets

India has hit a significant milestone in its automotive manufacturing journey, establishing itself among Japan's five largest vehicle import sources during the fiscal year (FY) 2024-25, says a report by ET Auto. This marks growing international confidence in Indian-manufactured automobiles, particularly from sophisticated markets.

Export Values Show Dramatic Growth

Vehicle shipments from India to Japan witnessed remarkable growth, reaching $616.45 million during the first three quarters of FY25, compared to $220.62 million in the corresponding period of FY24, according to commerce ministry data compiled by the Society of Indian Automobile Manufacturers (SIAM).

The increase reflects strengthening trade relationships between the two nations' automotive sectors, with Japanese companies increasingly using their Indian operations as manufacturing bases for global distribution.

Major Players Driving Export

Leading the charge are Indian subsidiaries of prominent Japanese automakers, including Suzuki Motor Corp and Honda Motor Co, who are positioning India as a strategic production centre for international markets.

"Over decades, we have built a base in quality, cost, efficiency and technology in car manufacturing. This has given us volumes and economies of scale," Rahul Bharti, senior executive officer at Maruti Suzuki India, was quoted as saying. The company plans to export significant quantities of its upcoming e Vitara electric SUV to European and Japanese markets.

Jimny SUV Becomes Export Success Story

Maruti Suzuki's introduction of Jimny SUV exports to Japan in January 2025 marks a turning point in India-Japan automotive trade. The model generated exceptional demand in Japan, securing approximately 50,000 orders within four days of launch, forcing parent company Suzuki to temporarily halt new bookings.

Honda Cars India has similarly capitalised on export opportunities, shipping 45,167 units of its Elevate SUV, primarily to Japan, during the period, significantly exceeding its domestic sales of 22,321 units.

"Indian OEMs have been not only expanding into key markets such as Africa and Latin America but are also beginning to enter developed markets (like Japan) with globally competitive models," said Shailesh Chandra, president of the Society of Indian Automobile Manufacturers.

The success extends beyond four-wheelers, with Yamaha Motor India preparing to commence premium motorcycle exports to Japan. 

"The sourcing cost, the labour cost, is quite low in India compared to other countries," explained Itaru Otani, chairman of Yamaha Motor India Group.

India's Export Performance

India's overall automotive export performance demonstrates strong momentum, with car exports growing 15 per cent to 770,364 vehicles in the last fiscal year, substantially outperforming the modest 2 per cent increase in domestic sales to 4.3 million vehicles.

Compact Vehicles Lead

Export composition reveals interesting market preferences, with compact passenger cars, measuring up to 4 metres in length with engines up to 1.4 litres, comprising over 27 per cent of total vehicle exports. Compact SUVs within similar dimensional parametres are experiencing rising demand.

"There is also a steady demand of mid-sized passenger cars having engines up to 1.6-litre, constituting about 20per cent of the share of PV exports," Chandra noted. Utility vehicles measuring 4-4.4 metres in length have captured more than 18 per cent of export share.