Japan makes it to the top five markets for India-made cars

Japan has become one of the top five export destinations for Made-in-India cars for the first time in FY25, highlighting the growing global acceptance of Indian-manufactured vehicles, including in developed markets. Key exporters include Suzuki Motor Corporation and Honda Motor Company’s local units, which are increasingly positioning India as a production hub. According to commerce ministry data collated by the Society of Indian Automobile Manufacturers (SIAM), vehicle shipments to Japan rose to Rs. 5,245.98 crore (US$ 616.45 million) in the first nine months of FY25, up from Rs. 1,877.47 crore (US$ 220.62 million) in FY24. Maruti Suzuki began exporting its Jimny Sport Utility Vehicle (SUV) to Japan in January, signalling an acceleration of this trend. Senior executive officer at Maruti Suzuki India, Mr. Rahul Bharti, noted that decades of building quality, efficiency, and technology have created economies of scale, with plans to export many e Vitara electric SUVs to developed markets such as Europe and Japan.
Japan is a major car producer and exporter, with 5.12 million vehicles shipped in 2024. Honda Cars India exported 45,167 units of its Elevate SUV, mainly to Japan, more than double its domestic sales. Maruti Suzuki’s Fronx and Jimny SUVs are also available in Japan, with the Jimny generating around 50,000 orders within four days of launch. Industry leaders emphasise the expansion of Indian original equipment manufacturers (OEMs) into developed markets with globally competitive models. Yamaha plans to export premium motorcycles to Japan, leveraging India’s lower sourcing and labour costs. Overall, India’s car exports rose 15% to 7,70,364 vehicles in FY23, outpacing the 2% growth in domestic sales. Compact SUVs now constitute over 25% of exports, with mid-sized passenger cars and utility vehicles also seeing strong demand. Industry players aim to increase the export share to 30% within five years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.