Made-in-India cars are finding increased global acceptance with top carmakers pushing exports to make the most of the strong cost and talent advantage available in the country. Toyota, Volkswagen, Hyundai, Mahindra, Tata Motors, Honda, and Skoda have all reported significant jumps in exports in 2023. Market leader Maruti Suzuki hit a new high by exporting 261,700 passenger vehicles including cars and SUVs. With the Indian regulatory norms moving towards global standards, vehicles being developed and sold here need minimum adaptation for export markets, industry officials said. India’s low-cost manufacturing, arbitrage in labour costs, availability of skilled manpower, and a well-developed supplier base offer carmakers a competitive cost advantage, they said. ‘With increasingly stringent regulations focusing on safety, emissions, and technological advancements, car manufacturers are investing in research, development, and innovation,’ said Piyush Arora, managing director and CEO of Škoda Auto Volkswagen India. VW exported 40,920 passenger vehicles in 2023, registering a growth of 29%, while Skoda’s exports soared 431% to 1,530 units. Addressing the Bharat Mobility Global Expo 2024, commerce and industry minister Piyush Goyal called on the automobile industry to raise the share of vehicles being exported to 50% of all passenger vehicles made in the country by 2030. India’s car exports stood at 671,384 units in 2023, up 4% from the previous year. The boost in exports is also expected from electric vehicles, buoyed by the production-linked incentive scheme for the automobile and parts industry. Carmakers have several EVs lined up for launch in the coming years and they are most likely to ship these to overseas markets as well. Last year, Toyota Kirloskar Motors restarted exports by shipping Made-in-India Urban Cruiser Hyryder hybrid SUV to South Africa and West Asia. ‘This development shows the company’s commitment towards ‘mass electrification’, which underpins India’s emergence as a global manufacturing hub for cleaner and greener vehicles,’ a company spokesperson said. Toyota exported close to 16,000 passenger vehicles in 2023 against 263 units the previous year. Toyota Group has also been exporting e-drives, a critical electric powertrain component in vehicles powered with advanced hybrid technology that is locally manufactured by Toyota Kirloskar Auto Parts. Of the total installed capacity of 136,000 units in TKAP, 70% has been marked for exports. Skoda Volkswagen plans to ship India-made cars to markets in East Asia this year. Currently, its key markets include Mexico, the Gulf Cooperation Council, sub-Saharan nations, and North Africa. In many cases, cars made in India are shipped to other developing markets such as Southeast Asia, Latin America, and Africa. However, most of these markets have their own industry and are not much open to imports, said Ravi Bhatia, president at Jato Dynamics. In the case of more open markets such as Chile, Mexico, and South Africa, the competition is quite tough as Chinese makers are stronger and moving faster, he said. Market leader Maruti Suzuki plans to triple exports from India in the next 5-8 years. Its large model lineup and scale give Maruti Suzuki the cost advantage to export to newer markets, said its senior executive director. Hyundai, the second-largest exporter of PVs from India, is also exploring new markets. Uncertainties due to volatile geopolitics and high inflation had led to some shipment disruptions last year.