India's Automobile Exports Accelerate to Record $12.15 Billion in FY25
India's automobile export sector has achieved a significant milestone, with the total value reaching an impressive $12.15 billion in the fiscal year 2024–25. This marks a substantial increase from $10.98 billion in FY24 and represents a near-doubling from the $7.13 billion recorded in FY21, according to the latest data released by the Union commerce ministry. The remarkable growth is primarily attributed to record-breaking shipments of passenger vehicles and two-wheelers, coupled with a steady recovery in commercial vehicle exports.
Passenger Vehicles Lead the Charge with Record Exports
Passenger vehicles have solidified their position as the largest contributor to India's automotive export earnings. In FY25, exports in this category rose by 10% to a record $6.84 billion, compared to $6.22 billion in the previous year and a significant jump from $3.78 billion in FY21. The expansion highlights India's growing prowess in the global automotive market.
Key markets for India-built cars and SUVs include:
- South Africa: Leading with shipments worth $1.25 billion.
- Saudi Arabia: Close behind at $1.19 billion.
- Mexico: A crucial destination with exports valued at $887 million.
- Japan: Experiencing explosive growth, with exports surging to $813 million from just $29 million four years earlier, underscoring India's expanding footprint in developed markets.
- UAE and Indonesia: Also recorded strong performances, with shipments at $471 million and notable growth, respectively.
Two-Wheeler Exports Rebound Strongly
The two-wheeler segment has demonstrated a robust recovery, with exports climbing to $3.21 billion in FY25, up from $2.77 billion in FY24 and $2.06 billion in FY21. This resurgence is largely fueled by burgeoning demand in Latin American markets.
Major markets for two-wheelers:
- Mexico: Emerged as the largest market, with exports reaching $390 million in FY25, a dramatic increase from $90 million in FY21.
- Colombia: Recorded exports worth $380 million.
- Guatemala: Saw shipments rise to $173 million from $84 million in FY21.
- Brazil: Contributed exports of $123 million.
However, shipments to Nigeria declined sharply to $188 million from over $440 million in 2021–22, indicating weaker demand in certain African regions.
Commercial Vehicle Exports Show Steady Growth
Commercial vehicle exports have also posted healthy gains, rising to $1.70 billion in FY25 from $1.58 billion in the previous year and $767 million in FY21. This growth reflects consistent demand from West Asia and Africa.
Top destinations for commercial vehicles:
- Saudi Arabia: Remained the largest market with exports of $332 million.
- South Africa: Followed with $199 million.
- Indonesia: Recorded shipments worth $174 million.
- UAE: Exports increased to $142 million.
- Georgia: Emerged as a fast-growing destination, with exports reaching $89 million.
Three-Wheeler Exports Face Challenges
In contrast, three-wheeler exports experienced a decline, dropping to $398 million in FY25 from $657 million in 2021–22 and $519 million in FY21. This downturn is primarily due to falling demand in Africa, with shipments to Nigeria plummeting to $54 million from over $150 million three years earlier. On a positive note, Latin American markets such as Mexico and Peru saw growth, with exports rising to $51 million and $43 million, respectively.
Shifting Export Dynamics and Overall Volume
The data reveals a gradual transformation in India's automobile export profile. Passenger vehicles and two-wheelers are the primary drivers of overall expansion, with Latin America, West Asia, and developed markets gaining increased prominence. While Africa remains an important destination, its share has diminished in segments like two- and three-wheelers.
In terms of volume, India exported a total of 5.36 million vehicles in FY25, comprising 4.2 million two-wheelers and 0.77 million passenger vehicles, highlighting the scale of the country's automotive export operations.
