India is one of the world’s largest automobile manufacturers, with more than 25 million vehicles manufactured in Fiscal Year 2023. Globally, the country is the fourth largest producer of passenger and commercial vehicles.
India is also a major exporter of automobiles worldwide, exporting 24% of total vehicles produced in 2022.
Indian Export Trend
India exported 5.6 million vehicles in 2022, up 36% year over year. For April-July 2023, the total automobile exports stood at $8.9 billion, up 25% from the same period the previous year
Strong demand for vehicles owing to the recovery of the economy and alleviation of supply chain-related issues helped increase exports. In the 2023 Fiscal Year, India’s vehicle exports were up to $20 billion.
Given India’s strong geographic connections and bilateral relations with key countries across the globe, Indian exports grew considerably in recent years. According to the Ministry of Commerce and Industry’s statistics, the United States is a major export customer with close to $3 billion in exports as of 2022, followed by Mexico ($1.5 billion) and South Africa ($1.2 billion). Note that automotive exports go beyond cars and may include motorcycles, commercial vehicles, and even tractors.
India’s automotive industry is on its way to reaching $600 billion in revenue by 2035, according to MotorIndia.
U.S market
The ride of Indian-made cars to the United States continues to pick up speed. Now, the country is the second-biggest market for cars from India.
The Ford Eco-Sport SUV, made in Chennai, India, is exported to the United States. Ford India, a subsidiary of American carmaker Ford Motor Company, has utilized its Indian capacities to ramp up exports to several markets, including the US. Companies such as Maruti Suzuki, Hyundai and Volkswagen are ramping up their exports to the US from India
Regulatory Framework
The U.S Environmental Protection Association (EPA) requires any imported vehicles to meet emission and Department of Transportation standards. This includes safety standards and theft prevention requirements. It is unlikely that a car obtained overseas can meet all of these requirements, unless the same vehicle was originally made for the US market.
If your personal car does not meet the US car import requirements, the vehicle can only be imported by a registered importer. The car must also be modified into compliance, which can be an expensive and lengthy process.
