India’s automotive industry isn’t just growing at home—it’s becoming a global export powerhouse. As demand for affordable, reliable, and efficient vehicles rises worldwide, India is exporting everything from compact cars and two-wheelers to heavy trucks and electric vehicles. To boost competitiveness, the government has introduced several export incentive schemes and policies that make Indian manufacturers key players in the global auto supply chain.
India’s Growing Automobile Export Footprint
In 2025, India ranks among the top five vehicle exporters globally, shipping over 5 million vehicles annually to markets across Africa, Latin America, and Southeast Asia. The trend covers all major segments:
-
Passenger vehicles: Maruti Suzuki, Hyundai, and Kia lead exports to Mexico, Chile, and South Africa.
-
Two-wheelers: Bajaj Auto and TVS dominate in Africa and Latin America.
-
Commercial vehicles: Tata Motors and Ashok Leyland supply fleets to the Middle East and ASEAN countries.
India’s appeal lies in its cost efficiency, skilled workforce, and adherence to global emission standards.
Government Export Incentive Schemes Driving Growth
The Indian government has rolled out multiple policies under the Foreign Trade Policy (FTP) 2023–28 and Production-Linked Incentive (PLI) Scheme to make exports more competitive:
-
Remission of Duties and Taxes on Export Products (RoDTEP):
-
Refunds unrebated taxes and duties paid on exported vehicles or parts.
-
Encourages small and mid-size auto exporters.
-
-
Export Promotion Capital Goods (EPCG):
-
Allows import of capital goods at zero customs duty for production enhancement.
-
-
Production Linked Incentive (PLI) Scheme for Automobile & Auto Components:
-
₹25,938 crore allocated to reward manufacturers who meet export and localization targets.
-
Focus on EVs, hydrogen vehicles, and high-value auto components.
-
-
Duty Drawback Scheme:
-
Refunds customs/excise duties paid on imported materials used for export production.
-
-
Advance Authorization Scheme (AAS):
-
Permits import of inputs duty-free, provided export commitments are fulfilled.
-
Together, these initiatives have made India one of the most attractive manufacturing bases for global automakers.
Focus on Electric and Green Vehicle Exports
The shift toward green mobility is also reflected in export incentives. The PLI for Advanced Chemistry Cell (ACC) batteries and the FAME II policy indirectly support EV exports. Manufacturers exporting electric two-wheelers, buses, and lithium battery packs benefit from reduced GST, subsidies, and lower input tariffs.
EV exports from India grew 58% year-on-year in FY 2024–25, with key markets including Nepal, UAE, and Latin America.
| Category | Export Growth (2024–25) | Top Markets |
|---|---|---|
| Passenger EVs | +62% | UAE, Nepal, Chile |
| Electric Two-Wheelers | +54% | Africa, Latin America |
| Auto Components | +19% | Europe, Thailand, Brazil |
Free Trade Agreements (FTAs) Boosting Global Reach
India’s trade partnerships are unlocking new export destinations:
-
India–UAE CEPA: Eliminated import duties on 80% of goods, including automobiles.
-
India–Australia ECTA: Opens access to the Australian EV market.
-
Negotiations with the UK and EU: Expected to enhance market access for cars, parts, and EV batteries.
These trade pacts make Indian exports more competitive against Chinese and Southeast Asian manufacturers.
Challenges for Indian Exporters
Despite steady growth, exporters face some persistent hurdles:
-
Logistics Costs: Shipping costs remain 20–25% higher than global average.
-
Certification and Compliance: Varying safety and emission norms across regions require costly adjustments.
-
Currency Fluctuations: Volatile rupee-dollar exchange affects profitability.
-
Supply Chain Bottlenecks: Semiconductor shortages and raw material delays still impact production.
To counter these, the government is working on National Logistics Policy reforms and Maritime India Vision 2030 to modernize ports and cut freight costs.
Future of Auto Exports from India
By 2030, India aims to double its automobile exports, targeting $100 billion in annual export revenue.
Future strategies include:
-
Expanding EV and hydrogen vehicle exports.
-
Enhancing R&D collaboration for global market adaptability.
-
Building green logistics networks with sustainable shipping options.
-
Streamlining export documentation through Digital Trade Facilitation Systems.
Conclusion
The Indian automotive industry’s export success isn’t accidental—it’s policy-driven. With a robust mix of incentives, trade agreements, and forward-looking government support, India is well on its way to becoming a global automobile export hub. As the world shifts toward cleaner and smarter vehicles, Indian automakers stand poised to lead not just at home but across continents.
FAQs
What is the RoDTEP scheme for auto exporters?
It reimburses exporters for taxes and duties paid during production, improving export margins.
Which Indian automakers are leading in exports?
Maruti Suzuki, Hyundai, Tata Motors, Bajaj Auto, and TVS are among the top exporters.
How does the PLI scheme help auto exports?
It offers financial rewards for meeting export and production targets in EV and high-tech auto components.
Are EV exports included in government incentives?
Yes, EVs benefit from both PLI (Auto + ACC) and lower import duties on green technologies.
What’s India’s long-term goal for automobile exports?
To become a $100 billion global auto export hub by 2030 through policy-driven manufacturing expansion.