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India Emerges as a Leading Car Exporter to Japan in FY25

Written by: Aayushi ChaubeyUpdated on: 26 May 2025, 9:25 pm IST
India has become one of the top 5 car exporting countries to Japan in FY25. Companies like Maruti Suzuki and Honda have played a key role.
India Emerges as a Leading Car Exporter to Japan in FY25
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For the first time ever, India has become one of the top five destinations for car exports from Indian manufacturers, with Japan emerging as a major market. This marks a big achievement for India’s automobile industry, showing growing global demand for vehicles made in India, even in highly advanced markets like Japan.

Rapid Growth in Car Exports to Japan

According to data from India’s commerce ministry and the Society of Indian Automobile Manufacturers (SIAM), car exports to Japan jumped significantly to US$616.45 million in the first nine months of the financial year 2024-25. This is a huge increase compared to US$220.62 million in the entire previous year, FY24.

Although official numbers for the last quarter of FY25 are not yet available, industry experts expect the growth to continue. A key factor is Maruti Suzuki’s recent shipment of its Jimny SUV to Japan, which began in January 2025.

India’s Strength in Quality and Efficiency

As per various news reports, top officials at Maruti Suzuki have attributed this to India’s long-term focus on quality, cost control, efficiency, and technology in car manufacturing. These strengths have allowed Indian car makers to achieve large production volumes and economies of scale, making their products competitive globally.

Maruti Suzuki is also preparing to export a large number of electric SUVs, specifically the e-Vitara model, produced in India, to markets in Europe and Japan. This highlights India’s growing role as a production hub for electric vehicles.

Honda and Other Exporters Join the Growth Story

Besides Maruti Suzuki, other major exporters like Honda Cars India are also increasing their exports. Honda has shipped more than 45,000 units of its SUV model, Elevate, from India to global markets, contributing to India’s expanding footprint in automobile exports.

Japan’s Automobile Market Context

Japan itself is one of the world’s largest automobile producers and exporters. In 2024, Japan exported approximately 5.12 million vehicles. For Indian car exports to grow strongly in such a competitive market is a positive sign for India’s auto industry.

You might like: India Overtakes Japan to Become 4th Largest Economy

Conclusion 

India’s emergence as a key car exporter to Japan in FY25 shows that Indian manufacturers are gaining trust in global markets for their quality and efficiency. With rising exports of popular models like the Jimny and electric vehicles like the e-Vitara, India is becoming an important global production hub. The continued growth of exports to Japan and other advanced markets will boost India’s automobile sector and economy in the years ahead.
 
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: May 26, 2025, 3:55 PM IST

Aayushi Chaubey

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