Global Demand for ‘Made in India’ Products, But Not for Indian Brands

Recently, significant advancements have taken place in the car export sector.

On August 26, Maruti Suzuki revealed that its first fully electric vehicle, the eVitara, is set to be exported to over 100 countries, in addition to its availability in India.

On August 20, Tata Motors made a comeback in South Africa, the largest car market on the continent, by launching four new models.

On August 15, Mahindra & Mahindra presented four concept SUVs—Vision.T, Vision.S, Vision.SXT, and Vision.X—targeting both right-hand and left-hand drive markets.

Among these developments, Maruti Suzuki stands out in the export arena. The company reported a remarkable 17.6% growth in passenger vehicle exports for FY25, increasing from 280,712 units to 330,081 units. However, homegrown manufacturers like Mahindra and Tata Motors still have significant ground to cover.

Comparing Export Performances

In FY25, Mahindra and Tata Motors together accounted for a mere 2.4% of passenger vehicle exports. Out of 770,364 passenger vehicles shipped during the financial year, these two brands contributed only 18,590 units, with Mahindra exporting 15,743 units and Tata delivering 2,847 units.

While Mahindra has positioned itself as India’s second-largest automaker, it ranks eighth in exports, with Tata not far behind in eleventh place.

Industry analysts emphasize the need for both companies to enhance their brand presence globally.

Charting a Path to Global Markets

A former executive at Tata Motors pointed out that Indian brands, like Tata and Mahindra, are still in the early stages of building their international reputation, unlike established global players from Japan and Korea. In many developed regions, consumer brand awareness is high, leading to hesitance towards lesser-known manufacturers.

According to Gaurav Vangaal, an associate director at S&P Global Mobility, exporting cars involves more than just logistics; it necessitates a solid strategy and products tailored for global consumers. For years, Tata and Mahindra prioritized the domestic market or targeted regions with lower expectations and fewer regulatory hurdles, such as Nepal, Bangladesh, Bhutan, Sri Lanka, and some areas in Africa.

However, there are positive changes on the horizon. Vangaal noted that over the past five years, Indian consumer preferences have evolved to align more closely with global standards. “Both Tata and Mahindra have adapted well, offering products that meet these new demands,” he mentioned.

This transformation has given Indian manufacturers the confidence to explore established markets. We are witnessing Tata’s renewed entry into South Africa, as well as both brands contemplating expansion into Latin America, Europe, and the GCC.

India’s increased involvement in bilateral trade discussions, such as those with the UK focusing on the auto sector, is also opening new doors for homegrown manufacturers aiming at developed markets like the UK and Australia.

Analysts point out that the rise of electric vehicles presents a huge opportunity. As markets globally shift towards electrification, Mahindra’s vision concept SUVs and Tata’s future Avinya range of world-class EVs could significantly elevate their market position. Additionally, Tata’s acquisition of Jaguar Land Rover allows it to tap into premium global markets without relying solely on its brand.

Currently, while the overall narrative of car exports from India is upbeat, it showcases two distinct strategies. Global firms utilize India as a cost-effective manufacturing hub for their renowned models, whereas homegrown firms gradually enhance their capabilities and expand their footprint in niche and emerging markets, preparing for a broader venture into developed nations.