A $60 billion automaker you’ve never heard of

India’s automotive exports gathered pace in FY24–25, with total shipments of around US$35 billion and 5.63 million units exported. Against a global auto market expanding by just 2.2% annually in the next 5 years, India’s export growth of over 11% forecasted over the same period stands out as a structural shift. Beneath the volume story, India is also no longer just a cost-competitive supplier; it is emerging as a credible global hub, positioned alongside established leaders such as Tesla and BYD.

For decades, India’s auto sector was shaped by domestic priorities, which include compact cars, fuel‑efficient motorcycles, and rugged utility vehicles catering to value‑conscious consumers. 

Once peripheral, India’s auto sector has evolved into a globally integrated industry, leveraging scale, cost efficiency, and engineering depth to embed itself within international supply chains.

Beyond Tesla and BYD: The Emerging Indian Auto Leaders

• Maruti Suzuki

Maruti Suzuki, India's largest carmaker, is rapidly expanding exports of SUVs and compact models to Africa, the Middle East, and Latin America. Its modular platform and hybrid/EV lineup position it to capture global demand for efficient vehicles, making it a core beneficiary of India's structural shift toward premium export markets.

• Mahindra & Mahindra

A leader in SUVs and utility vehicles, particularly across emerging markets that value robustness and cost efficiency. With a growing focus on electric SUVs through its Born Electric platform, Mahindra aligns directly with global decarbonisation trends and positions itself to capture rising demand for sustainable, capable vehicles in diverse geographies.

Export Growth and Market Shift

The Indian automotive industry was valued at US$119 billion in 2024 and is projected to reach US$276.5 billion by 2034, growing well ahead of global peers. Exports are a central part of this expansion. Of the US$35 billion in automotive exports, roughly US$21 billion came from auto components, which are expected to maintain double‑digit growth through 2030.

India’s export footprint spans the United States, Europe, Africa, Latin America, and ASEAN. The US alone imported about US$6.6 billion in components last year, while two‑wheelers and utility vehicles continue to dominate in emerging markets. 

Crucially, the export mix is upgrading, from small motorcycles and entry‑level cars to SUVs, premium two‑wheelers, drivetrain systems, and EV‑ready platforms, marking India’s move up the value chain.

Competitive Edge: Why India Is Gaining Share

• Scale: India is the world’s largest producer of two-wheelers and ranks among the top producers of buses and commercial vehicles. A dense Tier‑1 and Tier‑2 supplier network supports cost-efficient and high-volume production, a decisive edge in competitive global markets.
• Capability: As vehicles become increasingly software-defined, India’s deep STEM talent pool and IT ecosystem enhance its role in embedded systems, battery management, and connected‑mobility platforms.
• Policy and logistics: Production-linked incentives, increased market access through global trade agreements, expanding freight corridors, and modernised ports are lowering export friction and reinforcing India’s role as a global manufacturing hub.

The Structural Shift Ahead

As multinational automakers diversify sourcing under “China+1” strategies, India is becoming the silent backbone of many global models. In a landscape long dominated by the United States, Europe, Japan, and recently reshaped by China’s EV surge, India is now set to join the leadership group. 

In the current global landscape, where supply‑chain resilience is critical, India's positioning is increasingly strategic and essential.

Active management, particularly through managers in India with significant on-the-ground presence and deep understanding of the local ecosystem and value chains, offers investors the clearest path to capture India’s automotive export transformation. These locally informed strategies excel at identifying emerging winners across OEMs and component suppliers that sit below global index weightings, while benchmarks and passive vehicles continue to underweight India’s export-oriented manufacturing leaders at the heart of this structural story.