Fiscal 2025 was the best-ever year for passenger vehicle exports from India: Here is why

Passenger vehicle shipments in FY2025 soared 15 per cent to hit 7,70,364 units, making this the best-ever yearly segment performance on rising demand for global models manufactured in India, stated the country’s industry body Society of Indian Automobile Manufacturers (SIAM).

Overall, all automobile exports from India jumped by 19 per cent to cross 53.6 lakh units, helped by a healthy overseas appetite for passenger vehicles, two-wheelers, and commercial vehicles.

Government support through the ‘Make in India’ initiative and general improvement of quality have pushed many manufacturers to start exporting to developed markets. Among the total exports, utility vehicle exports grew a sizable 54 per cent to a total of 3,62,160 units.

Two-wheeler exports improved, too, by 21 per cent to 41,98,403 units, according to SIAM, as new offerings and inroads to new geographies added to the demand. With Latin American and African regions stabilising economically, demand for India-made automobiles further shot up.

India exported a little over 3 lakh three-wheelers in the fiscal, up 2 per cent. Commercial vehicle exports climbed 23 per cent to 80,986 units, the industry body posted.

SIAM President Shailesh Chandra said that the rising demand for ‘Made in India’ vehicles is a testament to rising demand and improved competitiveness of the country’s vehicle manufacturing sector. This led to a robust recovery in all automobile segments, Chandra told agencies. The exports were further helped by new models, new markets, and rising demand in key African markets.

Automotive exports will be in focus in the upcoming bilateral trade agreement negotiations between India and the United States, since auto components and vehicles form a significant chunk of US Donald Trump’s tariff announcements.

Business