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India’s car exports have surged in FY2026, crossing previous records within eight months. Rising global demand has strengthened the auto sector, though Mexico’s higher import duties pose a new challenge for Indian manufacturers.
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New Delhi: Cars made in India are no longer limited to the domestic market. In recent years, the quality, cost-effectiveness, and technology of Made-in-India cars have established a strong presence in international markets.
The biggest proof of this is evident in the car export figures. In the first eight months of the current financial year, FY2026, India has already set a new record in car exports, significantly strengthening the automobile sector.
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According to the Society of Indian Automobile Manufacturers (SIAM), between April and November of FY2026, India exported approximately 5.99 lakh passenger vehicles. This figure is about 20 percent higher than the same period in the previous financial year.
In the same period of FY2025, approximately 4.98 lakh vehicles were exported. This means an increase of about 1 lakh additional units in just one year. This indicates that Indian cars are now becoming the preferred choice for global customers.
With four months still remaining in FY2026, and considering the current pace, it is estimated that this year could set the highest car export record to date. In FY2025, a total of 7.70 lakh passenger vehicles were exported.
Significantly, in three months of FY2026 (September, October, and November), more than 80,000 cars were exported each month. This reflects both the production capacity of India's auto industry and global demand.
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However, amidst this success, a major challenge has also emerged. Mexico has announced that from January 1, 2026, the import duty on cars made in India will be increased from 20% to 50%.
Mexico is a major export market for India. In FY2024, India exported approximately 1.94 lakh cars and SUVs to Mexico. The increase in tariffs could raise the price of Indian cars there, which is likely to affect demand.
Maruti Suzuki's Baleno, Swift, Dzire, and Brezza are quite popular in Mexico. Hyundai exports vehicles like the Grand i10, Aura, Venue, and Creta. In addition, cars from the Volkswagen Group and Nissan India are also sold in significant numbers there.
This rapid growth in car exports indicates that India is no longer just a large consumer market but has become a global auto manufacturing hub.
If the government and companies strategically address challenges like tariffs, India could create new history in car exports in the coming years.
