India's Automobile Exports Achieve Historic High in FY26
India's automobile exports have reached an unprecedented milestone, with data from the Society of Indian Automobile Manufacturers (Siam) revealing a record 6.64 million units shipped in the financial year 2025-26. This represents a robust growth of 24% compared to the 5.36 million units exported in the previous financial year, marking the fastest expansion rate in seven years. The surge is attributed to strong global demand across various vehicle categories, particularly passenger vehicles and two-wheelers, as manufacturers increasingly leverage India as a key global manufacturing and export hub.
Domestic Market Also Sees Record Deliveries
In the domestic market, vehicle deliveries soared to a new high of 28 million units in 2025-26, reflecting a 10.4% increase from the prior year. This dual growth in both exports and domestic sales underscores the resilience and competitiveness of India's automotive sector. Specifically, car exports rose by 17.5% to approximately 900,000 units during this period.
Leading Exporters and Market Dynamics
Maruti Suzuki emerged as the frontrunner in exports, with shipments jumping 33% to 440,000 units. Tata Motors recorded the sharpest increase among companies, with exports soaring 3.8 times to 10,200 units, largely due to a low base and successful re-entry into markets such as South Africa. According to Gaurav Vangaal, associate director for light vehicle production forecast at S&P Global Mobility, Indian exports are poised to expand across nearly all global markets, with Europe expected to play a particularly significant role. He noted that increased shipments from Maruti Suzuki to European markets should drive substantial growth by the end of the decade.
Industry Insights and Future Outlook
Shailesh Chandra, president of Siam, highlighted that export momentum remained strong throughout the year, unlike the domestic market where the first half was relatively muted. He stated, "Exports grew consistently at around 20% across most segments, with passenger vehicles showing strong momentum. However, there could be some headwinds in markets like Mexico and the Middle East. The increasing acceptance of Indian products and rupee depreciation have supported export growth, and the overall outlook remains strong." Chandra also cautioned that the West Asia conflict may pose short-term challenges for the auto industry due to higher prices of crude oil and other commodities.
This record performance positions India as a formidable player in the global automotive landscape, with sustained growth anticipated in the coming years.
