In a significant development reflecting India’s growing stature in global automobile manufacturing, Japan has emerged as one of the top five export destinations for Made-in-India cars in the financial year 2024-25 (FY25). This marks the first time that the Japanese market—known for its high standards and robust domestic automobile industry—has featured so prominently among Indian car export destinations.

According to data released by the Commerce Ministry and compiled by the Society of Indian Automobile Manufacturers (SIAM), vehicle shipments to Japan touched ₹5,245.98 crore (US$ 616.45 million) in the first nine months of FY25. This marks a massive leap from ₹1,877.47 crore (US$ 220.62 million) reported in FY24, underlining a remarkable 179% increase in export value.

This growing demand is largely driven by the increasing positioning of India as a strategic production and export hub by global automakers such as Suzuki Motor Corporation and Honda Motor Company, which operate through their local Indian subsidiaries. These companies have expanded production facilities and developed models in India not only for the domestic market but also for export to mature global markets.

Key Drivers Behind the Surge

One of the most notable developments in FY25 was the export of the Maruti Suzuki Jimny SUV to Japan, which began in January. This milestone represents Maruti Suzuki India’s entry into the Japanese domestic market, marking the first time that a vehicle manufactured in India by Maruti Suzuki is being sold in Japan. Within just four days of launch, the Jimny racked up approximately 50,000 orders, indicating the model’s high demand and the brand's strong recognition in its home country.

Rahul Bharti, Senior Executive Officer at Maruti Suzuki India, noted that this export success is the result of decades of focus on quality, efficiency, and technology, which has enabled the company to create economies of scale. Bharti further mentioned that Maruti Suzuki plans to export more electric SUVs, such as the e-Vitara, to developed regions like Europe and Japan, reinforcing the trend of India becoming a global manufacturing base for clean and technologically advanced vehicles.

Similarly, Honda Cars India has made a strong impression with the Elevate SUV, exporting 45,167 units, primarily to Japan. What makes this even more impressive is that exports of the Elevate SUV outnumbered its domestic sales in India, indicating robust international demand. This reinforces Honda's strategy to utilize India as a cost-effective production centre for global supply chains.

India's Position as a Global Automotive Exporter

Japan’s inclusion in the top five markets for India-made vehicles is more than symbolic—it represents a significant shift in the global perception of Indian automotive manufacturing. Japan is traditionally one of the world’s largest automobile producers and exporters, having shipped 5.12 million vehicles in 2024 alone. Therefore, its growing imports from India highlight the competitiveness and quality of Indian automotive production.

The export strategy has not been limited to just four-wheelers. Two-wheeler manufacturers like Yamaha have also started positioning India as an export base for premium motorcycles, again taking advantage of India’s lower production and labour costs. This trend is expected to grow as more global OEMs (original equipment manufacturers) set up export-oriented production facilities in the country.

India’s overall vehicle exports rose by 15% to 7,70,364 units in FY25, compared to a modest 2% growth in domestic vehicle sales. This trend underlines a shift in focus among automakers from the domestic to global markets, especially where profit margins and volumes are higher.

Rising Popularity of Compact and Mid-Size SUVs

Another noteworthy trend is the dominance of compact and mid-size SUVs in the export mix. Compact SUVs alone account for over 25% of total vehicle exports, with mid-size passenger vehicles and utility vehicles also witnessing steady demand across global markets.

The combination of global design standards, high fuel efficiency, competitive pricing, and robust after-sales support is making India-made cars increasingly popular in developed regions such as Europe, Japan, Latin America, and the Middle East.

Outlook for the Indian Automotive Export Sector

Looking forward, industry stakeholders have set an ambitious target to increase the share of exports to 30% of total production within the next five years. This expansion is expected to be driven by:

• Continued government support through incentives under schemes like PLI (Production Linked Incentive) for the auto and auto components sectors.

• Strategic partnerships between Indian manufacturers and global OEMs.

• Expansion of electric and hybrid vehicle offerings tailored to international emission norms and consumer preferences.

• Improved logistics and port infrastructure, which reduces delivery time and enhances supply chain reliability.

Challenges and Considerations

Despite the optimistic outlook, there are several challenges that could affect this upward trajectory. These include:

• Geopolitical uncertainties that could disrupt global supply chains or impact demand in certain regions.

• Fluctuations in foreign exchange rates which can affect the profitability of exports.

• Compliance with evolving global emission and safety standards, which requires continuous R&D and investment.

Nevertheless, with the current momentum, India is well on its way to cementing its position as a global automobile manufacturing powerhouse. The inclusion of Japan—a highly sophisticated and mature market—among the top five destinations for Indian car exports is a clear validation of the industry's growing international stature.

Conclusion

The ascent of Japan into the top five markets for India-made cars in FY25 marks a historic turning point in India's automotive export journey. Supported by the likes of Maruti Suzuki, Honda, and Yamaha, India is rapidly becoming a preferred global manufacturing hub for both four-wheelers and two-wheelers. This achievement reflects the hard-earned reputation of Indian OEMs for quality, efficiency, and cost competitiveness.

With ambitious plans to scale up exports, deepen global market penetration, and expand electric vehicle offerings, India’s automobile sector is gearing up for a defining decade. As more developed nations begin to rely on Indian manufacturing capabilities, the country’s role in the global auto supply chain will only become more critical.

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