Vehicle exports from India touch 5.7 million in FY 2024-25

By Admin

01 Jul, 2025

India’s automobile industry has once again demonstrated its strength and resilience, achieving a significant milestone in the financial year 2024–25. Vehicle exports surged to 5.7 million units, reflecting the sector's increasing global reach and the country's growing stature as a major automobile hub.

Driving Economic Growth

The automobile sector remains a cornerstone of India's economic development. It now contributes approximately 7.1% to the national GDP and an impressive 49% to the manufacturing GDP. This highlights the sector’s vital role in both the industrial and economic frameworks of the country.

A Major Employment Generator

In addition to economic output, the auto industry is a powerful employment engine, supporting over 3.7 crore jobs across India. Its vast value chain, spanning manufacturing, supply, and services, offers livelihoods to millions and reinforces its position as one of the largest employment providers in the nation.

Expanding Global Presence

India’s auto exports are growing rapidly. In FY 2024–25, 5.7 million vehicles were exported to key markets including Japan, Mexico, Latin America, and Africa. This is part of a broader trend driven by rising international demand for Indian-made vehicles, thanks to their competitive pricing and improved quality.

Production on the Rise

The country’s production capacity has expanded significantly. India produced over 31 million vehicles in FY25 alone, including:

• 5 million passenger cars
  
  

• 1 million commercial vehicles
  
  

• 1 million three-wheelers
  
  

• Nearly 24 million two-wheelers
  
  

This surge positions India as the third-largest automobile market by sales and the fourth-largest by production globally.

Supportive Policy Environment

Much of this progress is made possible through proactive government policies. A key initiative is the Production Linked Incentive (PLI) scheme, with a substantial outlay of Rs 25,938 crore. The scheme aims to boost domestic manufacturing and promote the adoption of advanced automotive technologies such as electric vehicles (EVs), hydrogen-powered engines, and autonomous systems.

Toward a Sustainable and Innovative Future

The PLI scheme not only enhances India's manufacturing capabilities but also encourages the transition to sustainable mobility solutions. It plays a crucial role in integrating the Indian auto sector into global supply chains, making the country a preferred destination for auto production and innovation.

A Roadmap to $5 Trillion Economy

As India advances towards becoming a USD 5 trillion economy, the automotive sector continues to stand out as a key growth engine. Its remarkable export performance, backed by strong domestic policies and innovation in mobility solutions, places India firmly on the global automotive map.