India's Car Exporting Machine Gears Up with 22% Q1 FY26 Growth

India's auto sector has started FY26 on a strong note, with 22% year-on-year growth in exports during the April–June quarter. Society of Indian Automobile Manufacturers (SIAM) has attributed this growth to strong demand for two-wheelers and passenger vehicles in foreign markets.

 

Key Highlights
 

- Total vehicle exports were 14,57,461 units, up from 11,92,566 units in Q1 FY25

- Exports of passenger cars reached an all-time record quarterly figure of 2,04,330 units, a 13% rise

- Two-wheeler exports increased 23% to 11,36,942 units

- Commercial vehicle shipments increased by 23% to 19,427 units

- Three-wheeler exports saw the biggest rise, increasing 34% to 95,796 units

 

Market Drivers
 

- Strong demand in the Middle East and Latin America

- Rebound in nearby markets like Sri Lanka and Nepal

- Increases in Japanese interest

- Export momentum supported by Free Trade Agreements with countries such as Australia

 

Key Exporters - Maruti Suzuki led the passenger vehicle segment with 96,181 units exported, up 37%

 

- Hyundai Motor India with 48,140 units, up 13% from last year

 

Prospect With increased global demand for Indian cars and strategic trade alliances in position, the industry is in a position to continue the momentum. Q1 performance sets the rest of FY26 on a positive trajectory. 

 

Sources: SIAM, Business Standard, Daijiworld, Moneycontrol, The Statesman, The Hindu Business Line, Economic Times Auto