World buying ‘made in India’, but not Indian – Industry News

Recently, three major developments happened on the car export front. 

On August 26, Maruti Suzuki announced that its first born-electric car, eVitara, will be exported to more than 100 countries, in addition to being sold in India. 

On August 20, Tata Motors re-entered South Africa—the continent’s biggest car market —with four new models.

On August 15, Mahindra & Mahindra showcased four concept SUVs—Vision.T, Vision.S, Vision.SXT, and Vision.X—for both right-hand drive (RHD) and left-hand drive (LHD) markets.

Of these, while the Indo-Japanese Maruti Suzuki is big on exports—its PV exports grew 17.6% in FY25, from 2,80,712 units to 3,30,081 units—homegrown carmakers such as Mahindra and Tata Motors have a long way to go.

Foreign vs. Homegrown Exports

In FY25, these two carmakers had a share of just 2.4% in PV exports—of the total 7,70,364 PVs exported during the financial year, they contributed only 18,590 units together (Mahindra expor-ted 15,743 units, and Tata did just 2,847 units).

Even though Mahindra has now become India’s second-largest carmaker, on the export front, it is at the eighth position, and Tata at a distant 11th.

Automotive analysts said that both the carmakers have to work hard on brand-building. 

New road to global markets

“Unlike established international players from Japan and Korea, Indian brands like Tata and Mahindra are still in the process of building their global reputation,” a former Tata Motors CXO told FE. “In many developed markets, car buyers are highly brand-conscious and may be hesitant to purchase a vehicle from a less-known manufacturer.”

Gaurav Vangaal, associate director, S&P Global Mobility, added that exporting isn’t just about shipping cars, but requires two foundational elements —a strategic plan and a product tailored for international markets. “For years, Tata and Mahindra primarily focused on the domestic market or exported to regions with limited volumes and minimal regulatory demands—like Nepal, Bangladesh, Bhutan, Sri Lanka, and parts of Africa. These were relatively low-investment geographies with expectations below those of Indian consumers.”

But there is work in progress. Vangaal said that over the past five years, Indian consumer preferences have matured, aligning closely with global standards. “Both Tata and Mahindra have responded well, delivering products that meet these elevated expectations,” he added. 

“This evolution has instilled greater confidence in Indian OEMs to explore mature markets. We’re now seeing real-time strategic intent from both—Tata has re-entered South Africa, and both are evaluating Latin America, Europe, and the GCC as potential export destinations,” he said.

 “India’s increasing participation in bilateral trade agreements—such as the UK-India trade discussions where the auto sector was a central theme – is also creating new pathways for homegrown manufacturers to target developed markets like the UK and Australia,” he added.

Analysts added that electrification is a big opportunity for both the carmakers. “Many global markets are quickly going electric, and Mahindra’s Vision concept SUVs and Tata’s upcoming Avinya range of world-class EVs can change the game for these carmakers,” an analyst said. “Tata has another strategy – the acquisition of Jaguar Land Rover (JLR) has allowed it to tap into the premium global markets without using its own brand.”

But as of today, while the overall car export story from India is positive, it’s a tale of two different approaches – global companies leveraging India as a cost-effective manufacturing base for their established models, and homegrown players building their capabilities and slowly expanding their presence in niche and emerging markets before making a full-fledged push into developed countries.