India auto exports jump 38% in April as FY27 begins

Exports start FY27 on a strong note

India’s automobile exporters opened the new fiscal year with double-digit growth in overseas shipments in April, supported by demand across categories. Export momentum came despite logistical snarls linked to tensions in West Asia, which have complicated shipping routes and schedules for some markets. Exporters said diversification across geographies is helping cushion near-term disruptions.

April snapshot: production, domestic dispatches, exports

Industry data showed production and dispatches rose sharply year-on-year in April, pointing to a strong start to FY27 for both domestic and external demand. Total production of passenger vehicles (PVs), three-wheelers, two-wheelers and quadricycles increased 26% year-on-year to 2.92 million units. Domestic dispatches rose 27.9% to 2.31 million units. Exports grew 38% to 628,128 units, with two- and three-wheelers leading the acceleration.

Passenger vehicle exports led by utility vehicles

Within PV exports, utility vehicles were the standout in April. Utility vehicle shipments increased 13% year-on-year to 35,289 units, while passenger car exports rose 12% to 31,335 units. Overall PV exports were reported at 67,308 units in April, up 13.3% year-on-year.

Two-wheelers drive the export surge

Two-wheelers continued to dominate export volumes and growth in April. Total two-wheeler exports rose 38.3% year-on-year to 509,199 units. Reported sub-segment performance was even stronger, with motorcycle exports surging 36% to 426,000 units and scooter exports jumping 50% to 80,810 units.

Three-wheelers post the fastest growth rate

Three-wheelers recorded the sharpest percentage jump among major categories in April. Exports of three-wheelers surged 84% year-on-year to 50,655 units, highlighting the recovery in overseas demand for this segment.

Export-oriented makers: Bajaj Auto’s April numbers

Export-oriented manufacturers saw particularly strong gains in April. Bajaj Auto’s motorcycle exports increased to 229,326 units from 129,322 units a year earlier, reflecting improving overseas demand conditions during the month.

SIAM flags West Asia-linked commodity price risk

While the April data points to a healthy underlying demand environment, SIAM cautioned on input-cost risks. The industry body flagged rising commodity prices linked to disruptions in West Asia as a potential challenge for the auto sector. The warning comes alongside the acknowledgement that demand conditions, especially in exports, remain supportive.

FY26 ends at a record, exports grew at the fastest pace in seven years

On a full-year basis, India’s automobile exports touched a record 66.4 lakh units in FY26, rising 24% from 53.6 lakh units in the previous financial year, according to SIAM data cited in reports. Domestic deliveries also reached a new high of 2.8 crore units in FY26, up 10.4% year-on-year. Car makers exported about nine lakh units in FY26, an increase of 17.5%.

Company-level details showed Maruti Suzuki leading PV exports, with shipments of 4.4 lakh units in FY26, up 33%. Tata Motors recorded the sharpest increase as a company, with exports rising 3.8 times to 10,200 units, supported by a low base and re-entry into markets such as South Africa. SIAM’s president Shailesh Chandra said exports grew consistently at around 20% across most segments through FY26, while also noting possible headwinds in markets such as Mexico and the Middle East.

Diversification across markets remains a key cushion

Diversified export exposure has been highlighted as a stabiliser when specific routes or regions face disruption. Maruti Suzuki, for instance, exports to nearly 100 countries across Latin America, Africa, Asia, Europe and the Middle East. The company’s export volumes rose 33.75% year-on-year to 400,734 units in April-February FY26, compared with 299,617 units in the same period last year. At 12.5%, shipments to the Middle East would translate to roughly 50,000 units during the period.

Key data points (April and full-year)

Why this matters for markets and the sector

The April performance extends a multi-year trend of rising global acceptance for India-made vehicles across categories. The Economic Survey has described the automobile industry as a core engine of economic growth, citing India’s position as the world’s largest market for two-wheelers and three-wheelers and the third-largest market for passenger and commercial vehicles combined. The Survey also noted that government policies, including PLI schemes and electric mobility programmes, have supported the sector’s trajectory.

At the same time, the West Asia conflict has two direct transmission channels for the industry: logistics disruptions that can slow shipments and commodity price increases that can pressure costs. SIAM’s caution on commodities, alongside exporters’ emphasis on geographical diversification, frames the key near-term balance between demand strength and operational friction.

Conclusion

India’s auto industry began FY27 with sharp growth in production, dispatches, and exports, led by two-wheelers, three-wheelers, and utility vehicles. Near-term risks remain linked to West Asia-driven logistics and commodity price volatility, while diversification across markets continues to be positioned as a buffer.