India Automobile Trade
India is the world's third-largest automobile market and is rapidly establishing itself as a global manufacturing and export hub. Two-wheelers have historically led India's auto exports, but the past five years have seen passenger vehicle and auto component exports surge significantly as global OEMs expand Indian manufacturing.
The passenger vehicle export story is particularly compelling. Hyundai uses its Chennai plant as a global export hub for smaller cars. Kia exports the Sonet and Seltos from Anantapur. Suzuki exports from Manesar to Africa, Middle East, and Latin America. Tata and Mahindra are building export programmes for EVs and SUVs.
The EV transition introduces both opportunity and uncertainty. India is competitive in two-wheeler EV manufacturing and is building battery cell manufacturing capability under PLI schemes. However, Chinese EV manufacturers, with lower battery costs, remain a competitive threat if India does not protect domestic manufacturers through tariffs while building cost competitiveness.
| Year | Exports | YoY | Imports | YoY | Balance |
|---|---|---|---|---|---|
| FY 2025-26 | $10.8B | -53.2% | $4.3B | -52.6% | +$6.5B |
| FY 2024-25 | $23.0B | +8.5% | $9.0B | +7.4% | +$14.0B |
| FY 2023-24 | $21.2B | -1.8% | $8.4B | +6.9% | +$12.8B |
| FY 2022-23 | $21.6B | +7.0% | $7.8B | +14.4% | +$13.7B |
| FY 2021-22 | $20.2B | +46.1% | $6.9B | +33.5% | +$13.3B |
- →India is world's 3rd largest auto market, largest 2-wheeler market
- →Hyundai, Kia, Suzuki use India as global export hubs for small cars
- →Two-wheelers (Hero, Honda, Bajaj, TVS) dominate export volumes
- →Auto components sector exports $20B+ annually — a separate, large industry
- →EV transition is creating new global competitiveness in 2-wheelers and 3-wheelers
Key listed plays: Maruti Suzuki (export base through Suzuki), Hyundai Motor India (now listed), Tata Motors, Mahindra & Mahindra, Bajaj Auto (3-wheeler exports), TVS Motor. Auto components exporters include Bharat Forge, Motherson Sumi, Minda Industries, and Sona BLW. The rupee is a key variable — weaker rupee makes Indian vehicles cheaper for export markets.