top of page

India’s Auto Exports Surge 19% in FY25 – SUV Boom and Global Demand Recovery Fuel Momentum

Indian Automobile Industry

20 May 2025

India’s automobile sector is racing ahead on the global track. In FY25, total auto exports hit 5.36 million units, marking an impressive 19% year-on-year growth. This surge was fueled by a powerful global comeback in vehicle demand, especially for utility vehicles and two-wheelers, where India has rapidly built a strong export base.


Among the most striking trends was a 54% jump in SUV exports, driven by evolving global tastes, preference for feature-rich compact SUVs, and competitive pricing from Indian manufacturers. Simultaneously, two-wheeler exports rose 21%, powered by rising demand in key overseas markets like Africa, Latin America, and Southeast Asia. Commercial vehicle exports also jumped 23%, underlining a steady recovery in global infrastructure and logistics activity.


Global Recovery Lifts Indian Vehicles

The FY25 performance showcases how India’s auto industry is benefiting from the global economic rebound. As countries reopen and economic activity resumes post-pandemic, the appetite for new vehicles especially SUVs and bikes has returned strongly. SUV exports reached 362,160 units, highlighting how Indian models are finding greater acceptance in overseas markets where rugged design, fuel efficiency, and affordability matter.


India’s cost-competitive manufacturing base, reliable supply chains, and improving quality benchmarks have made it an attractive hub for global automakers. Domestic companies are increasingly designing export-specific models that cater to international preferences, further boosting volumes.





Strong Momentum in Two-Wheelers and Commercial Vehicles

Two-wheeler exports climbed to 4.2 million units, with players like Bajaj Auto, TVS Motor, and Hero MotoCorp driving growth. These companies have established strong dealership and service networks in Africa and Latin America, allowing them to cater to price-sensitive customers with dependable models.

Meanwhile, commercial vehicle exports hit 80,986 units, signaling a positive shift in industrial sentiment globally. As infrastructure spending increases in emerging markets and cross-border trade expands, demand for trucks and utility vehicles from India is gaining traction. This also reflects India's reputation for durable, low-maintenance CVs suited to challenging environments.


Leading Exporters Fueling the Growth

Maruti Suzuki retained its top exporter status, shipping over 332,000 units, a 17.5% rise over last year. International versions of the Jimny, Baleno, and Fronx were standout performers.


Hyundai Motor India, another major player, exported around 163,000 units, targeting markets such as Saudi Arabia, South Africa, and Mexico. The company continues to leverage its Chennai plant for both ICE and EV exports, tapping into Hyundai’s global network.





What’s Driving the Trend – And Will It Last?

Three clear factors are powering India’s export engine:

  1. Quality and Cost Efficiency: Indian plants are now recognized for high-quality production at globally competitive costs.

  2. Policy Tailwinds: Government initiatives like the Production-Linked Incentive (PLI) scheme, and efforts to sign Free Trade Agreements (FTAs), are giving exports a structural boost.

  3. EV Potential: India’s two-wheeler EV makers are seeing rising interest from Europe and Asia, opening the door to a new phase of export-led growth.


The auto industry is also actively exploring new markets. Countries in Africa, Latin America, and Southeast Asia represent the next frontier for Indian exports, given their growing middle class and demand for affordable mobility.


Conclusion

India’s FY25 auto export surge is more than a statistical achievement it’s a strategic shift. From being primarily a domestic market, India is fast evolving into a global automotive export powerhouse. With SUVs leading the charge and two-wheelers spreading across continents, Indian automakers are not just making in India they are making for the world.


If current trends continue, and if electric and next-gen vehicle capabilities are built into export strategies, India’s auto industry could play a central role in shaping the global mobility landscape for years to come.

bottom of page