Economic Survey 2026: Rising global acceptance of India-made vehicles fuels export growth

PVs and two-wheelers emerged as the key export growth drivers in FY25 and H1 FY26.

• India's vehicle exports rose 19.2% y-o-y in FY25, driven by PVs and two-wheelers.
• Exports grew 24.3% y-o-y in April-September FY26, showing strong global demand.
• Auto sector employs 3 crore people, contributes 15% to GST collections.

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India's automotive exports are gaining momentum as global acceptance of vehicles manufactured in the country across different segments, including passenger vehicles (PVs), commercial vehicles (CVs), three-wheelers and two-wheelers, continues to rise, according to the Economic Survey 2025-26.

The Survey highlighted strong growth in overseas shipments, with an industry-wide double-digit rise in FY25 and the first half of FY26.

The industry is witnessing tremendous growth in exports, the Survey said, adding that it reflects rising global acceptance of India-made vehicles.

According to data from the industry body Society of Indian Automobile Manufacturers (SIAM), total vehicle exports from India rose 19.2% year-on-year (y-o-y) to 53,63,089 units in FY25 from 45,00,494 units in FY24.

During April-September FY26, there was an increase of 24.3% y-o-y to 31,43,224 units from 25,27,909 units in the same period last year.

The PV and two-wheeler segments were the primary drivers of export demand in FY25 and H1 FY26. The PV segment grew 14.6% y-o-y in FY25 and 18.4% y-o-y in H1 FY26, while the two-wheeler segment climbed 21.4% y-o-y in FY25 and 24.2% y-o-y in H1 FY26.

Top 5 PV exporters

Top 5 two-wheeler exporters

Source - SIAM

"The automotive industry is a significant driver of economic growth, with India established as the world's largest market for two-wheelers and three-wheelers and the third-largest market globally for PVs and CVs," the Survey said.

"Supported by a vast manufacturing and auto component ecosystem, the sector provides direct and indirect employment to over 3 crore people and contributes significantly to public finances, accounting for nearly 15% of the country's GST collections," it added.

The Survey also noted that the industry has recorded nearly 33% growth in production over the last decade (from FY15 to FY25). "A robust demand-side recovery has driven both production growth and sales in the post-pandemic period," it observed.