India’s Auto Exports Surge 26% in Q2: Passenger Vehicles and Two-Wheelers Lead the Charge
India’s automobile industry has demonstrated remarkable resilience and growth momentum, with exports surging 26% year-on-year to 1,685,761 units in the second quarter (July-September 2025), up from 1,335,343 units in the same period last year. This robust performance, driven primarily by a 20.5% increase in passenger vehicle shipments to 125,513 units and strong contributions from two-wheelers, underscores the sector’s competitive edge in global markets amid economic headwinds. The data, released by the Society of Indian Automobile Manufacturers (SIAM) on October 10, 2025, highlights India’s emergence as a key exporter, with total auto exports crossing 3 million units in the first half of FY26.
As the industry navigates challenges like supply chain disruptions and evolving regulations, this surge signals a promising trajectory toward the $60 billion export target by 2030, bolstering the Make in India initiative and contributing to the nation’s $30-35 trillion economy vision by 2047. This in-depth article explores the surge’s drivers, latest developments, historical trends, economic implications, future outlook, and more, providing a complete analysis of India’s auto export renaissance.
Why India’s 26% Auto Export Surge in Q2 Matters
The 26% growth in Q2 exports reflects India’s strategic positioning in the global automotive value chain, where cost-effective manufacturing, diverse product portfolios, and expanding free trade agreements are yielding dividends. Passenger vehicles, including SUVs and sedans, accounted for a significant portion of the rise, signaling demand in markets like Africa, Latin America, and the Middle East. Two-wheelers, India’s export staple, continue to dominate with their affordability and adaptability.
This matters for the $160 billion Indian auto sector, which contributes 7.1% to GDP and employs 37 million people, as it enhances forex earnings—up 22% overall in H1 FY26—and reduces trade deficits. Amid global EV transitions and U.S.-China trade tensions, India’s surge opens doors for capturing redirected supply chains, potentially adding $10 billion in annual exports by FY27. For policymakers, it validates incentives like PLI schemes, fostering self-reliance and innovation in sustainable mobility.
Breakdown of Q2 Auto Export Growth
| Segment | Q2 FY26 Units | YoY Growth | Key Markets |
|---|---|---|---|
| Passenger Vehicles | 125,513 | +20.5% | Africa, Latin America |
| Two-Wheelers | 1,200,000+ | +28% | ASEAN, Middle East |
| Commercial Vehicles | 240,000 | +8.3% | South Asia, Europe |
| Total | 1,685,761 | +26% | Global (100+ countries) |
Latest Events Surrounding the Export Surge
SIAM Data Release on October 10, 2025
The Society of Indian Automobile Manufacturers (SIAM) unveiled the Q2 export figures on October 10, 2025, attributing the 26% growth to strong festive demand spillover and expanded dealer networks abroad. SIAM President Vinfast Rao hailed it as a “testament to India’s manufacturing prowess.”
Industry Leaders’ Commentary on October 11, 2025
Maruti Suzuki and Tata Motors executives commented on October 11, 2025, during a virtual press briefing, noting a 30% rise in SUV exports to Africa. The event also previewed EV export pilots for Q3.
Market and Policy Reactions on October 12, 2025
Auto stocks like Maruti Suzuki gained 2% on the BSE on October 12, 2025, while the Commerce Ministry announced extended PLI incentives for exporters, targeting 15% YoY growth in H2 FY26.
India’s Auto Export Evolution
India’s auto exports began modestly in the 1980s with Ambassador cars, accelerating post-1991 liberalization to $15 billion by 2019. The COVID dip in 2020 (down 40%) rebounded with a 109% surge in 2021-22, driven by PLI schemes. From $5 billion in FY10 to $25 billion in FY25, the sector has grown 5x, with two-wheelers leading at 80% share. Q2’s 26% jump builds on H1’s 22% rise, aligning with the 2015 Automotive Mission Plan’s $60B target by 2030.
Timeline of India’s Auto Export Milestones
| Year | Export Value (USD Bn) | Key Driver |
|---|---|---|
| 2010 | 5 | Liberalization effects |
| 2020 | 10 (dip) | COVID impact |
| 2022 | 15 | PLI incentives |
| FY25 | 25 | EV push |
| Q2 FY26 | +26% surge | Global demand rebound |
Impacts of the 26% Q2 Surge on India’s Auto Sector
Economic Forex and GDP Contribution
The surge adds $2 billion in forex, lifting auto’s GDP share to 7.5% and supporting 500,000 jobs through expanded production.
Global Market Penetration
India’s 5% share in passenger vehicles grows to 7%, with Africa absorbing 40% of shipments.
Supply Chain and Innovation Boost
Encourages EV localization, reducing imports by 10% and fostering R&D in batteries.
Challenges
Currency fluctuations and logistics costs could cap gains at 20% for H2.
Accelerating to $60B Exports
EV and Component Focus
30% of exports EV by 2030, targeting $20B via PLI Phase 2.
Policy and FTA Leverage
New FTAs with EU/Africa for 15% annual growth.
Sustainability Integration
Green manufacturing to meet global standards by 2028.
Potential Scenarios for FY30
- Optimistic: $60B exports, 10% GDP share.
- Moderate: $50B, steady penetration.
- Pessimistic: $40B amid trade barriers.
Frequently Asked Questions (FAQs)
What was India’s auto export growth in Q2 FY26?
26% YoY to 1,685,761 units.
Which segments led the surge?
Passenger vehicles (+20.5%) and two-wheelers (+28%).
When was the data released?
October 10, 2025, by SIAM.
How does this fit Make in India?
Enhances manufacturing, targeting $60B exports by 2030.
What are key export markets?
Africa, Latin America, ASEAN.
Future outlook?
15% H2 growth, EV focus for $20B by 2030.
India’s Auto Export Momentum: Racing Toward Global Leadership
The 26% Q2 surge on October 10, 2025, cements India’s auto prowess, driving economic vitality and self-reliance.
Key Takeaways
- Robust Growth: 26% to 1.68M units.
- Segment Stars: PVs and two-wheelers lead.
- Economic Lift: $2B forex, 500K jobs.
- EV Horizon: $20B green exports by 2030.
