Cars manufactured in India are continuing to make a strong mark in global markets, pushing the country’s automobile exports to new highs. According to data released by the Society of Indian Automobile Manufacturers (SIAM), overseas shipments of Indian-made passenger vehicles touched 5,99,276 units in the first eight months of FY2026, registering a 20 percent year-on-year growth.

During the same period last year (April–November FY2025), India exported 4,98,763 passenger vehicles. This means exports have increased by 1,00,513 units in just one year, underlining the growing acceptance of Made-in-India cars across international markets.

With four months still remaining in the current financial year, the passenger vehicle industry is already close to surpassing its all-time export record of 7,70,364 units, achieved in FY2025. Monthly export performance has also been strong, with shipments crossing 80,000 units three times so far in FY2026—87,762 units in September, 84,646 units in November, and 82,246 units in August.

Mexico tariff hike poses a challenge
Despite the strong momentum, Indian carmakers are facing a potential setback from Mexico, one of India’s key export destinations. Mexico has announced that it will raise import duties on passenger vehicles manufactured in India from 20 percent to 50 percent, effective January 1, 2026.

Mexico is currently India’s third-largest passenger vehicle export market, after South Africa and Saudi Arabia. In FY2024 alone, Mexico imported around 1.94 lakh cars and SUVs from India, accounting for nearly 25 percent of India’s total passenger vehicle exports of 7.7 lakh units. This translated into a business turnover of roughly $1.9 billion (around ₹15,800 crore).

Impact on Indian auto companies
Mexico is preparing to impose higher duties on imports from countries with which it does not have a Free Trade Agreement (FTA). In this context, the steep 35–50 percent tariff on Indian automobiles is being seen as a serious challenge for Indian manufacturers. The impact is expected to be felt not only in the passenger vehicle segment but also in two-wheeler exports.

Which Indian cars go to Mexico?
Several major automakers rely heavily on Mexico as an export destination:

• Maruti Suzuki India exports around 66,000 to 70,000 units annually to Mexico, accounting for roughly 22–25 percent of its total exports. Key models include the Baleno, Swift, Dzire, and Brezza.

• Hyundai Motor India ships about 25,000 to 30,000 units, including the Grand i10 Nios, Aura, Venue, and Creta.

• Volkswagen Group exports nearly 55,000 to 60,000 units of models such as the Virtus, Slavia, Taigun, and Kushaq.

• Nissan India exports several thousand units of the Magnite SUV, which is sold in Mexico under the name Nissan Kicks.