India is steadily gaining ground as a global manufacturing hub for automobiles, with increasing shipments to European markets reflecting its competitive, low-cost production capabilities.
Export Growth to Europe
Between April and August FY26, Indian car exports to the UK, Germany, Spain, and Norway reached Rs. 559 crore (US$ 63 million) — nearly nine times higher than FY25, though still representing 2% of India’s total vehicle exports.
This growth complements strong gains in Japan, where exports rose almost fourfold to Rs. 7,215 crore (US$ 813 million) in FY25 and reached Rs. 2,916 crore (US$ 328.64 million) between April and August FY26.
Global Manufacturers Leveraging India
Major automakers such as Suzuki Motor and Honda Motor are using India as a central hub for their global strategies:
- Suzuki plans an investment of Rs. 67,478 crore (US$ 7.61 billion) by 2031 to raise its annual manufacturing capacity from 2.5 million to 4 million units, and has already exported over 7,400 units of its eVitara electric vehicle to Europe.
- Honda has designated India as the manufacturing base for a new electric vehicle set for export to Japan and other Asian markets.
Overall Vehicle Exports
India exported 5,14,622 vehicles between April and October FY26, approximately 67% of FY25’s total exports, led by Maruti Suzuki, followed by Hyundai, Nissan, and Volkswagen. Key export destinations include:
- South Africa: 17% of shipments, worth Rs. 11,004 crore (US$ 1.24 billion)
- Other major markets: Saudi Arabia, Mexico, Japan, UAE
Supporting Factors
- Domestic auto sector maturity: Improved safety and quality standards have unlocked new international markets.
- Auto component exports: Indian component shipments reached Rs. 2,03,215 crore (US$ 22.9 billion) in FY25, with Europe accounting for 29% of exports, bolstering the global competitiveness of Indian-made vehicles.
India’s expanding automotive footprint demonstrates the country’s emergence as a preferred hub for cost-efficient, high-quality vehicles and a growing presence in both European and global markets.
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