India’s automobile export market has registered an impressive 22% year-on-year (YoY) growth in the first quarter of FY26 (April to June 2025). According to data released by the Society of Indian Automobile Manufacturers (SIAM), total vehicle exports across all categories rose to 1,457,461 units, up from 1,192,566 units during the same quarter of the previous year. This surge was predominantly powered by record-high passenger vehicle (PV) exports, along with significant gains in two-wheeler, commercial vehicle, and three-wheeler segments.

Passenger Vehicle Exports Hit Record High

India's passenger vehicle exports achieved an all-time high in Q1 FY26 with 204,330 units shipped, marking a 13% increase from 180,483 units recorded in Q1 FY25. The consistent demand from global markets, including the Middle East, Latin America, and neighboring South Asian countries like Sri Lanka and Nepal, contributed significantly to this performance. Additionally, exports under Free Trade Agreements (FTAs) with regions such as Australia and improved demand from Japan played a pivotal role in elevating these figures.

Maruti Suzuki Leads the Pack

Maruti Suzuki, India's largest car manufacturer, has cemented its dominance in the export market, shipping 96,181 units in Q1 FY26—a substantial 37% jump from 69,962 units in the same period last year. The automaker now commands an unprecedented 47% share of India’s total passenger vehicle exports, the highest ever recorded by the company.

Rahul Bharti, Senior Executive Officer for Corporate Affairs at Maruti Suzuki, emphasized that this performance reflects the company's sustained commitment to diversifying its export portfolio and leveraging global opportunities. “While the rest of the industry witnessed a marginal 2% decline, Maruti Suzuki's export volumes surged by over 37%, indicating strong international demand for our models,” Bharti stated.

Maruti’s export strategy includes adaptation to regional regulations, customized model variants, and deepening market penetration in non-traditional markets.

Hyundai and Other OEMs Post Steady Growth

Hyundai Motor India, another key player, exported 48,140 units, representing a 13% increase from 42,600 units shipped in Q1 of the previous fiscal year. The company continues to focus on Latin America, Africa, and South-East Asia as key markets for its i10 and i20 models.

Other OEMs, including Kia, Toyota, and Nissan, also posted stable export performance, albeit on a smaller scale compared to the market leaders.

Two-Wheelers and Commercial Vehicles See Strong Demand

The two-wheeler segment, which represents the bulk of India’s vehicle exports, reported a 23% increase in shipments, reaching 1,136,942 units in Q1 FY26 from 923,148 units in Q1 FY25. This growth was led by strong international demand for models from Bajaj Auto, TVS Motor, and Hero MotoCorp, particularly in Africa, Latin America, and ASEAN regions.

Likewise, commercial vehicle exports experienced a 23% YoY rise, with 19,427 units shipped, highlighting consistent demand for medium and heavy commercial vehicles from countries in South Asia, the Middle East, and Africa.

Three-Wheelers Post Highest Growth Rate

In a remarkable shift, three-wheeler exports posted the highest segmental growth with a 34% YoY increase, rising from 71,462 units to 95,796 units. These figures underscore a renewed global demand for affordable last-mile mobility solutions, especially in emerging economies where three-wheelers are a preferred mode of transport.

Market Trends and Supporting Factors

The overall growth in India’s auto exports is underpinned by several macro and industry-specific trends:

• Resilient global demand despite inflationary pressures and supply chain disruptions.

• FTA-driven advantages, especially with markets like Australia, enabling duty-free access.

• India’s increasing reputation for cost-competitive, quality manufacturing.

• The rupee’s relative stability improving export realization.

• A focus on fuel efficiency and regulatory compliance, making Indian vehicles more acceptable in developed and emerging markets alike.

The report also noted that Tiruppur’s contribution to readymade garment exports, along with similar export performance in marine products, indicates a multi-sectoral export surge where the US has emerged as the dominant destination for Indian exports, particularly across electronics, apparel, seafood, and now automobiles.

Outlook for FY26

Industry analysts suggest that India’s auto exports are poised to maintain strong double-digit growth in the coming quarters of FY26, provided current momentum continues. Several factors are expected to sustain this trend:

• Increased penetration in new geographies such as Latin America and Africa.

• Expansion of EV exports, with several manufacturers including Tata Motors and MG Motor lining up shipments of electric models.

• Potential new trade pacts and export incentives under consideration by the government.

• Supportive global policies promoting green mobility, where Indian EV models may find competitive traction.

The Indian government’s ‘Make in India’ initiative, along with efforts to streamline logistics, reduce customs duties, and improve port efficiency, is also seen as a catalyst for enhanced outbound shipments from the auto sector.

Conclusion

India’s Q1 FY26 auto exports performance signals a strategic milestone, driven by a record surge in passenger vehicle exports, especially from Maruti Suzuki, and robust gains across two-wheeler, commercial, and three-wheeler segments. The country’s growing clout in the global automotive trade, backed by strong demand, policy support, and manufacturing excellence, underscores its emergence as a global mobility hub. As newer opportunities in EV exports, FTAs, and supply chain resilience unfold, India is well-positioned to expand its footprint further in the international automotive landscape.

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