India's goods are being purchased globally, yet its reputation remains untarnished
India's Car Export Landscape: A Tale of Two Approaches
India's car export story is painting a positive picture, but it's a tale of two distinct strategies. While Maruti Suzuki dominates the export market, homegrown players like Tata and Mahindra are gradually making their mark.
Maruti Suzuki, India's largest car exporter, is set to take its electric vehicle, the eVitara, to more than 100 countries. In the financial year 2025 (FY25), the company's Passenger Vehicle (PV) exports grew by 17.6%, from 2,80,712 units to 3,30,081 units.
On the other hand, Mahindra and Tata Motors, India's second and third largest carmakers, exported 15,743 and 2,847 units respectively in FY25. Mahindra currently stands at the eighth position in PV exports, while Tata is at the 11th position. However, their combined contribution to the total PV exports in FY25 was only 18,590 units, accounting for just 2.4% of the total 7,70,364 units exported.
Electrification presents a significant opportunity for both Tata and Mahindra. Global companies are leveraging India as a cost-effective manufacturing base for their established models, while homegrown players are building their capabilities and expanding their presence in niche and emerging markets.
Tata Motors' acquisition of Jaguar Land Rover allows it to tap into the premium global markets without relying heavily on its own brand. The company has re-entered South Africa, the continent's biggest car market, with four new models. Mahindra & Mahindra showcased four concept SUVs for both right-hand drive and left-hand drive markets, indicating a global ambition.
However, both Tata and Mahindra are still in the process of building their global reputation. Automotive analysts suggest that brand-building is crucial for their success. In many developed markets, car buyers may be hesitant to purchase a vehicle from a less-known manufacturer.
Royal Enfield's Siddhartha Lal has voiced concerns about the split Goods and Services Tax (GST) on bikes, suggesting a uniform 18% GST on all two-wheelers to simplify the tax structure and boost the industry.
India's increasing participation in bilateral trade agreements is creating new pathways for homegrown manufacturers to target developed markets. Exporting requires a strategic plan and a product tailored for international markets. Both Tata and Mahindra are evaluating Latin America, Europe, and the GCC as potential export destinations.
In response to the elevated consumer expectations in India, both Tata and Mahindra have shown resilience. They are gradually addressing the quality concerns and meeting the expectations of their customers.
In conclusion, while Maruti Suzuki continues to lead India's car export market, Tata and Mahindra are making steady progress. Electrification, brand-building, and strategic expansion are key areas of focus for these homegrown players.
