India's Auto Exports Surge 15% to Record High

India's automotive sector marked a significant milestone in 2025, achieving record vehicle exports of 858,000 units, a 15% year-over-year increase. This surge is attributed to growing demand in Africa, South America, and West Asia, bolstered by a robust supplier base, cost-effectiveness, and technological progress. Maruti Suzuki alone accounted for 46% of these exports, underscoring the dominance of key domestic manufacturers on the global stage.

The sector's strategic importance is amplified by its potential to act as a 'power-lifter' for India's economy, driving exports, fostering domestic resilience, and anchoring the nation in global value chains. With plans to double passenger vehicle exports to 30% of production within five years, Indian carmakers are set to enhance foreign exchange earnings and create employment. However, global trade uncertainties necessitate agile diplomacy and diversification of export markets.

The Indian government is actively supporting the auto industry through trade agreements, FDI promotion, and schemes for electric vehicles (EVs), battery ecosystems, and component manufacturing. Budget 2026-27 is expected to introduce further measures, including incentives for EV production and exports, strengthening domestic suppliers, and supporting R&D. A proposed Rs 7,000 crore scheme aims to build resilient global value chains for the sector, reinforcing its export momentum and global competitiveness.