Indian cars are making inroads into the European market as manufacturers look for an alternative to China
Global automakers are sharply increasing exports of Indian-made vehicles to Europe and the United Kingdom, reflecting India's growth as a major low-cost manufacturing hub beyond traditional export markets in Latin America, Africa and the Middle East, Nikkei reports.
Suzuki, Honda, and other Japanese manufacturers are now considering India as the centerpiece of their global manufacturing strategy, including for electric vehicles, due to cost advantages, skilled labor, improved infrastructure, and a mature ecosystem of suppliers. Suzuki is investing 1.2 trillion yen to expand capacity to 4 million units by 2031 and has begun exporting its first electric vehicle, the eVitara, to Europe, while Honda plans to ship future electric vehicles from India to Japan. Significant investments from Hyundai, Toyota and other companies reflect changes in the industry aimed at reducing dependence on China.
Analysts note that Indian-made cars are becoming a competitive alternative to Chinese models due to the growing global demand for affordable electric vehicles and compact cars with internal combustion engines. From April to October, India exported more than 514,000 vehicles, with Maruti Suzuki leading the way, with markets such as South Africa, Saudi Arabia, Mexico and Japan absorbing most of the volume. India's automotive components sector, with a volume of $23 billion, further enhances its export competitiveness. Experts add that a strong export strategy helps automakers maintain factory workload in the event of a slowdown in domestic demand.