Between April and August this financial year, passenger car exports rose 8.5 per cent year-on-year (Y-o-Y), while domestic sales fell by 8.5 per cent..
Even as passenger car sales are on a downhill trajectory in India, their exports are on the rise, as the appetite for affordable cars is growing in economies like Mexico and those in Africa -- which are witnessing steady growth in disposable incomes but remain price-sensitive.
Data from the Society of Indian Automobile Manufacturers (Siam) showed that between April and August this financial year, passenger car exports rose 8.5 per cent year-on-year (Y-o-Y), while domestic sales fell by 8.5 per cent, indicating a slowdown in demand in the home market.
Two of India's largest passenger vehicle (PV) exporters -- Maruti Suzuki India and Hyundai Motor India -- saw 37 per cent and 12.45 per cent jump, respectively, in overall exports during this period. PVs include both cars and utility vehicles.
Of this, in the passenger cars segment, where Maruti exports Swift, Baleno, Dzire models, there was a staggering 43 per cent growth in exports between April and August.
Hyundai too saw close to 16 per cent growth in passenger car exports. The Korea-headquartered company exports the i10 NIOS from India.
During the same time, Hyundai saw a close to 16 per cent drop in passenger car sales in India, while Maruti witnessed 6.4 per cent decline in domestic sales of passenger cars.
"Interestingly, if you notice, all our top five export models are less than four metres. So, it is clear that globally customers prefer compact cars and have a strong acceptance for small cars.
"Customers understand that small cars have a lower impact on the environment and help reduce road congestion,” Rahul Bharti, senior executive officer, Maruti Suzuki, told Business Standard.
Maruti's top five models for exports in FY26 are Fronx, Jimny, Swift, Baleno and Dzire with the top five markets being Japan, West Asia, Africa, and Latin America.
For Hyundai too, Latin American and African markets are doing well when it comes to small car exports.
“Our small cars, particularly the i10 NIOS, have been performing very well in markets like South Africa, Mexico and Chile where customers value Hyundai's advanced features, quality and premium design that appeal to both fleet and retail segments,” said Tarun Garg, whole-time director & COO, Hyundai Motor India.
Puneet Gupta, director, Mobility Forecast India & Asean Region, S&P Global Mobility said: "Indian expertise in producing compact, cost-efficient cars at scale has created a strong manufacturing base. This advantage positions India as a natural export hub for global small-car demand.”
“With economies such as Africa and Mexico witnessing steady growth in disposable incomes, yet remaining price-sensitive, the appetite for affordable, reliable cars is rising. India is uniquely placed to seize this demand and cement its role as the world factory for small cars,” he said.
Garg is pinning hopes on exports and says they target to grow by 7-8 per cent in FY26.
“Most of our export markets have remained stable and continue to register growth helping us deliver consistent performance. From April to August 2025, we recorded a 12.5 per cent growth in exports, and we are on track to achieve target of 8 per cent Y-o-Y.”
Maruti is the country's largest car exporter since FY22. Bharti said that they plan to continue this stride, and their share in PV exports is more than 46 per cent today.
"Additionally, we have a robust target of 400,000 units exports this year. Our Kharkhoda plant has started. With Gurgaon, Manesar, Gujarat and Kharkhoda, we have enough capacity to meet the increase in demand.”
Bharti also added that Maruti's exports are 'well-diversified' with 100 countries across the globe and even UVs are doing well.
“Last year, we started exporting to Japan with Fronx and Jimny. This year, we have re-entered Europe with the e VITARA,” he said.
Hyundai too feels that besides small cars, their popular SUVs like Exter, Venue, Creta and Alcazar too contribute sizeable volume to exports, consolidating Hyundai Motor India's position as the largest exporter of passenger vehicles from India on a cumulative basis.
Feature Presentation: Rajesh Alva/Rediff
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