Maruti Suzuki, Hyundai: Driving Export Growth in FY26!
Despite facing difficulties in the Indian automotive sector, Maruti Suzuki and Hyundai Motor India remain hopeful about significant growth in exports for FY26. This optimism is fueled by new model introductions, opportunities in emerging markets, and strategic diversification efforts.
Summary:
India’s top automobile manufacturers, Maruti Suzuki and Hyundai Motor India, are focused on achieving significant export growth in the fiscal year 2026. Maruti Suzuki aims to increase exports by 20%, targeting 4 lakh units through a robust product lineup, including the Fronx and Jimny. Hyundai Motor India, meanwhile, is focusing on low single-digit growth but aspires to become Hyundai’s largest export hub outside South Korea. Both firms are betting on international demand to offset domestic market stagnation and capitalize on India’s strategic manufacturing position.
Indian Automakers Shift Gears Toward Exports in FY26
As the Indian passenger vehicle market faces increasing saturation, evolving regulatory challenges, and shifting customer preferences, two of India’s biggest automobile manufacturers—Maruti Suzuki and Hyundai Motor India—are adjusting their strategies to prioritize export-driven growth in the financial year 2025–26 (FY26). This shift not only underscores the challenges in the domestic landscape but also showcases the growing confidence of these OEMs in the global appeal of their India-manufactured vehicles.
Maruti Suzuki Targets a Robust 20% Export Growth
India’s largest carmaker, Maruti Suzuki, has laid out an ambitious target for FY26: a 20% increase in export volumes, aiming to ship over 4 lakh units overseas. This follows a year of substantial groundwork laid in FY25, where the company streamlined its production and realigned product offerings to suit global markets.
Maruti’s export strategy is built on two key foundations:
New-Age SUVs: Models like the Fronx and Jimny have received a favourable reception in overseas markets, especially in Africa, Latin America, and Southeast Asia. These compact SUVs cater well to global preferences for fuel efficiency, affordability, and compact mobility solutions.
Diversification of Export Markets: Maruti has broadened its export markets beyond the usual strongholds in Africa and the Middle East to now also encompass emerging regions like Latin America, ASEAN, and CIS countries. This reduces reliance on any single geography and helps mitigate risks from geopolitical or economic disruptions.
“We aim to maintain a sustained export momentum by expanding our geographical footprint and tailoring our product offerings to diverse global markets,” said a senior Maruti Suzuki executive.
Hyundai Eyes Single-Digit Growth, Focuses on Emerging Markets
Hyundai Motor India, the second-largest passenger vehicle manufacturer in the country, is equally bullish on exports, albeit with a more measured forecast. The company is projecting low single-digit growth in export volumes in FY26, but it’s playing the long game.
Hyundai’s strategy revolves around transforming its Indian manufacturing operations into the largest export hub outside of South Korea. It presently ships vehicles to more than 85 countries, such as Mexico, Chile, South Africa, and Saudi Arabia.
Key drivers for Hyundai’s export ambitions include:
Focus on Emerging Markets: Hyundai is targeting countries with rising middle classes and underpenetrated car ownership markets. Countries across Latin America, Africa, and Southeast Asia are top of the list.
Product Lineup Optimization: Hyundai is refining its vehicle offerings to meet safety, emission, and regulatory norms in its export destinations. Hatchbacks like the Grand i10 NIOS and SUVs like the Creta remain key export models.
Make in India, Export to the World: Hyundai’s manufacturing plants in Chennai have seen considerable investment upgrades in recent years to ramp up production quality and capacity for exports.
“We are leveraging India’s strategic advantage in cost-effective production and skilled manpower to serve global markets,” Hyundai stated in a media interaction.
Why the Export Focus Now?
Various elements are encouraging Indian automakers to intensify their focus on exports:
Stagnating Domestic Demand: With high vehicle penetration in urban areas and rising interest rates, domestic sales have plateaued for some segments. Exports offer a hedge against this saturation.
Favourable Currency Dynamics: A relatively weaker rupee enhances the price competitiveness of India-made vehicles in international markets.
Policy Push & FTAs: The Indian government’s emphasis on export-led growth, coupled with Free Trade Agreements (FTAs) with countries like the UAE and Australia, is opening new doors for automotive exports.
China+1 Strategy: Global supply chain realignment post-COVID-19 and geopolitical tensions with China are driving global OEMs to rely more on Indian facilities.
Opportunities and Challenges Ahead
Opportunities:
There is increasing demand for cost-effective and sturdy vehicles in Africa and Latin America.
Expansion into newer segments like electric vehicles (EVs) in export markets.
Both companies are building strong after-sales support and spare parts logistics globally.
Challenges:
Global economic slowdown risks, especially in developing markets.
Challenges in logistics include a lack of containers and elevated shipping costs.
Stringent emission and safety regulations in developed markets may limit model viability without significant reengineering.
Outlook: FY26 to Be a Turning Point for Indian Auto Exports
With the groundwork laid in FY25 and strong momentum heading into the next fiscal, FY26 is shaping up to be a landmark year for Indian automobile exports. Maruti Suzuki and Hyundai Motor India’s divergent yet ambitious strategies reflect the growing maturity of India’s automotive industry, both in terms of manufacturing capabilities and strategic foresight.
As India continues to cement its place as a global automotive production hub, export volumes are likely to contribute an increasingly significant share to automakers’ revenues, helping cushion domestic headwinds and enhancing India’s reputation as a trusted global exporter of quality vehicles.
The image added is for representation purposes only
