India's Car Exports Hit Record 858,000 Units in 2025 with 15% Growth

India exported 858,000 cars, sedans and utility vehicles in 2025, marking a 15 per cent increase compared against 2024, driven by an expanding supplier network, cost advantages and growing confidence in Indian-manufactured vehicles, ET Auto has reported citing senior industry leaders. Auto manufacturers concluded a challenging year with remarkable success, shipping a record number of India-made vehicles abroad, supported by increasing demand across Africa, South America and West Asia, reinforcing the nation's status as an emerging manufacturing centre.

Automobiles rank as the third most valuable exported product globally. In 2024, Indian carmakers had dispatched 744,000 passenger vehicles internationally.

Mexico Tariffs Pose Challenge

Maintaining this momentum will depend equally on trade negotiations as manufacturing capacity. With Mexico -- the third-largest market for Indian car exports -- more than doubling tariffs on various Indian products from January 1, 2026, outbound shipments could face disruption unless both nations conclude a trade agreement promptly.

Officials suggested last month that the terms of reference for a trade pact with Mexico are likely to be completed shortly.

Ambitious Export Targets

Indian carmakers aim to raise passenger vehicle exports to 30 per cent of total production within the next five years, up from approximately 15 per cent in 2024. India's presence has begun expanding even in established car markets such as Europe, Japan and Australia, industry executives were quoted as saying.

Maruti Suzuki Leads Export Market

Maruti Suzuki -- which recently commenced shipping its first electric vehicle e-Vitara to Europe -- recorded a 21 per cent rise in overall exports at 395,000 units in calendar 2025.

"Today out of 17 car companies in India, just one company, Maruti Suzuki, alone accounts for 46 per cent of India's total exports," Rahul Bharti, senior executive director at Maruti Suzuki India, was quoted as saying.

He observed that India's annual car exports have more than doubled during the past five years, by approximately 445,000 units from 413,000 in CY2020. Of this incremental growth, Maruti Suzuki contributed 308,000 units, representing 69 per cent.

Key Export Markets and Models

Bharti identified the company's primary markets as South America, Japan, Africa, West Asia and Southeast Asia. Maruti Suzuki dispatched 18 models to around 100 countries in 2025. It exported over 13,000 units of e-Vitara to 29 countries predominantly in Europe, Bharti said.

Honda Plans Export Expansion

Honda is also examining opportunities to increase exports, with India designated as the exclusive manufacturing base for its forthcoming EV.

"We currently export to 33 countries in both left-hand drive and right-hand drive markets including Japan, Mexico, Middle East, South Africa, SADC countries, Saarc region, Caribbean and South America, reinforcing India's role as an important manufacturing and export base for Honda and our commitment to the 'Make In India' initiative," Kunal Behl, vice-president (marketing and sales) at Honda Cars India, was quoted as saying.

The Japanese manufacturer exported more than 36,000 units of Elevate, City and Amaze from India in 2025, he noted.

Hyundai's India Manufacturing Strategy

For Korean automotive giant Hyundai, India functions as the manufacturing centre for emerging markets including Africa, West Asia and Latin America. In 2025, Hyundai Motor India's exports increased by 18 per cent year-on-year to 186,528 units. In total, it has exported over 3.8 million Indian-manufactured cars since establishment.