Japan Joins Top Five Export Markets for Indian-Made Automobiles

Japan has emerged as a significant market for Indian car exports, ranking among the top five destinations for the first time in the fiscal year 2025. This shift highlights the increasing global demand for vehicles produced in India, particularly from advanced economies. Major Indian automotive manufacturers, including Suzuki Motor Corp and Honda Motor Co, are leveraging India as a key production hub, with car exports to Japan soaring to $616.45 million in the first nine months of FY25, a substantial increase from $220.62 million in the previous fiscal year.

Surge in Exports to Japan

The latest data from the Indian commerce ministry, analyzed by the Society of Indian Automobile Manufacturers (SIAM), reveals a remarkable rise in car exports to Japan. In the first three quarters of FY25, exports reached $616.45 million, significantly higher than the total for FY24. Industry insiders anticipate further growth, especially following Maruti Suzuki’s recent shipment of the Jimny SUV to Japan, which began in January. This trend indicates a robust demand for Indian-manufactured vehicles in a market traditionally dominated by local manufacturers.

Key Players and Their Strategies

Leading Indian automotive companies are capitalizing on this opportunity. Maruti Suzuki’s senior executive officer, Rahul Bharti, emphasized the company’s commitment to quality and efficiency in car manufacturing, which has enabled them to achieve economies of scale. The company plans to expand its export portfolio by sending a significant number of e-Vitara electric SUVs to both European and Japanese markets. Meanwhile, Honda Cars India has reported exporting 45,167 units of its SUV Elevate to Japan, surpassing its domestic sales figures. Maruti Suzuki has also introduced popular models like the Fronx and Jimny in the Japanese market.

Challenges and Opportunities

Despite the positive growth, challenges remain. For instance, Suzuki temporarily halted new bookings for the Jimny five-door model due to overwhelming demand, receiving around 50,000 orders within just four days of its launch in Japan. This situation underscores the competitive landscape in the automotive sector, where Indian manufacturers are not only expanding into emerging markets but are also making inroads into developed markets like Japan. Shailesh Chandra, president of SIAM, noted that Indian Original Equipment Manufacturers (OEMs) are increasingly offering globally competitive models.

Future Prospects in the Two-Wheeler Sector

The growth in exports is not limited to four-wheelers. Yamaha is set to begin exporting premium motorcycles to Japan, with chairman Itaru Otani highlighting the cost advantages of manufacturing in India. Yamaha currently exports nearly a third of its output to 58 countries and has recently started shipments to Europe. The company aims to expand its reach to other advanced markets, including Japan and the United States. Overall, India’s automobile exports have seen a 15% increase, reaching 770,364 vehicles last fiscal year, while domestic sales grew by only 2%. Compact passenger vehicles and compact SUVs are becoming increasingly popular in the export market, reflecting changing consumer preferences.

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