Auto exports grow at fastest pace in 7 years

NEW DELHI: India’s automobile exports touched a record 66.4 lakh units in FY26, growing 24% (fastest in seven years) from 53.6 lakh units in the last financial year, driven by strong demand across categories, especially passenger vehicles and two-wheelers, as manufacturers used India as a global manufacturing and export hub, Siam data released Tuesday showed.In the domestic market, deliveries touched a new high of 2.8 crore units in 2025-26, 10.4% higher than the previous financial year.Car makers exported about nine lakh units in 2025-26, up 17.5%. Maruti Suzuki has taken the lead, with shipments of 4.4 lakh units, showing a jump of 33%. Tata Motors has recorded the sharpest increase as a company, with exports soaring 3.8 times to 10,200 units, largely due to a low base and re-entry into markets, such as South Africa.“Indian exports are poised to expand across nearly all global markets, with Europe expected to play a particularly significant role. By end of the decade, increased shipments from Maruti Suzuki to European markets should drive substantial growth,” said Gaurav Vangaal, associate director, light vehicle production forecast, at S&P Global Mobility.Shailesh Chandra, president of Siam, said export momentum remained strong throughout the year. “Unlike domestic market, where first half was relatively muted, exports grew consistently at around 20% across most segments. Passenger vehicles saw strong momentum, though there could be some headwinds in markets like Mexico and Middle East. Acceptance of Indian products is increasing and rupee depreciation has supported export growth.

Overall, outlook for exports remains strong,” he said.Chandra cautioned that West Asia conflict may pose short-term challenges for the auto industry due to higher prices of crude oil and other commodities.