Indian cars gain ground in Europe as global automakers ramp up exports
- IBEF
- November 21, 2025
Global automakers are increasingly exporting vehicles from India to Europe as the country strengthens its role as a competitive, low-cost manufacturing base. Shipments to the United Kingdom (UK), Germany, Spain, and Norway reached Rs. 559 crore (US$ 63 million) between April and August FY26, almost nine times higher than in FY25, although still accounting for only 2% of India’s overall vehicle exports. This momentum builds on strong gains in Japan, where exports rose nearly fourfold to Rs. 7,215 crore (US$ 813 million) in the FY25 and reached Rs. 2,916 crore (US$ 328.64 million) between April and August FY26. Companies such as Suzuki Motor and Honda Motor now position India at the centre of their global strategies, particularly for electric vehicles. Suzuki plans to invest Rs. 67,478 crore (US$ 7.61 billion) by 2031 to expand its annual manufacturing capacity in India from 2.5 million to 4 million units and has already exported more than 7,400 units of its first electric vehicle, the eVitara, to European markets. Honda has also designated India as the manufacturing hub for an upcoming electric vehicle that will be exported to Japan and other Asian markets.
India is emerging as a strong alternative manufacturing location as global competition intensifies, and demand rises for cost-efficient, high-quality vehicles. Between April and October FY26, India exported 5,14,622 vehicles, nearly 67% of total exports recorded in FY25, with Maruti Suzuki leading the shipments, followed by Hyundai, Nissan, and Volkswagen, according to the Society of Indian Automobile Manufacturers. South Africa was the largest export destination with 17% of shipments worth Rs. 11,004 crore (US$ 1.24 billion), followed by Saudi Arabia, Mexico, Japan, and the United Arab Emirates (UAE). The maturing domestic sector, especially in terms of safety standards, is helping unlock new markets. India’s auto component industry is also supporting this expansion, with exports worth Rs. 2,03,215 crore (US$ 22.9 billion) in FY25, and Europe accounting for 29% of shipments.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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