Bhopal: The Economic Survey 2025–26, tabled in Parliament today ahead of the Union Budget, has highlighted the accelerating acceptance of India-made passenger vehicles in international markets, with exports reaching a historic high in calendar year 2025 and continuing to grow strongly into FY26.
According to the Survey, passenger vehicle (PV) exports crossed 770,000 units in FY25 (April 2024–March 2025), registering a robust 14.6% year-on-year growth. Early data for the first nine months of FY26 already indicate continued momentum, with cumulative PV exports up ~18% compared to the same period last year.
Key Highlights from the Economic Survey
- Maruti Suzuki retained its position as India’s largest vehicle exporter for the sixth consecutive year, shipping 395,000 units in CY2025 a 21% increase over the previous year. The company now exports to more than 100 countries.
- SUVs accounted for 55–56% of total PV exports in 2025, up from 53.8% the year before, reflecting global preference for India’s competitively priced SUVs.
- Top destinations included South Africa (largest market), Mexico, Saudi Arabia, Chile, UAE, Peru, and a rapidly growing share in Europe (especially for EVs).
- The Survey notes that preferential market access under recently concluded FTAs (UK, Australia) and ongoing negotiations (EU, Canada) is helping Indian manufacturers gain share in price-sensitive and mid-premium segments.
Why Global Buyers Are Choosing Indian Cars
The Survey identifies four structural factors driving acceptance:
- Competitive pricing after GST rationalisation (small cars now at 18% effective rate) and production efficiencies under PLI scheme.
- Improved quality & reliability-Indian vehicles now consistently score high in global NCAP tests (e.g. Tata Punch, Nexon, Mahindra XUV 3XO).
- Rising demand for SUVs and compact EVs in emerging markets and Europe.
- Supply-chain resilience -Indian manufacturers have become a credible alternative amid global disruptions.
Company Performances in 2025
- Maruti Suzuki: 395,000 exports; Fronx became the fastest Indian SUV to reach 100,000 export units; e Vitara EV shipped 13,000+ units to 29 countries.
- Mahindra & Mahindra: Record 476,476 SUVs sold domestically + strong export growth.
- Tata Motors: Regained #2 position in domestic PV; Nexon remained top-selling model; EV exports picking up.
- Hyundai Motor India: ~163,000 exports, focused on Middle East, Africa, Latin America.
Outlook for 2026 & Beyond
The Survey projects PV exports to grow at 10–14% CAGR through FY30, supported by:
- New model launches (EV and ICE)
- Capacity expansion under PLI 1.1
- Operationalisation of new ports and logistics corridors
- FTAs with EU, Canada, GCC and others
It also emphasises the need to scale EV component manufacturing and charging infrastructure to capture higher-value export segments.
Conclusion
The Economic Survey 2025–26 presents a clear picture: global markets are increasingly giving a nod of acceptance to India-made cars. From being a negligible exporter a decade ago, India now ranks among the top-10 vehicle exporting nations. With SUVs leading the charge and EVs gaining traction abroad, the “Make in India” badge is steadily becoming synonymous with quality and value in showrooms across Africa, Latin America, the Middle East and Europe.
