Carmakers shield India’s exports with focus on emerging markets amid Chinese threat

The commentary of such carmakers comes at a time when Chinese carmakers look set to top global cumulative exports for the third consecutive year, with 5.62 million car exports in the first ten months of 2025, a growth of 16% compared to last year, driven by electric and hybrid vehicles.

Suzuki Motor Co. is using India as its global export hub, targeting more than 100 countries. While the company has begun exporting its electric vehicles to Europe, where Chinese carmakers are gaining a foothold, the Japanese company is cautious about engaging in competition with Chinese carmakers.

Suzuki’s caution

“Chinese players are lowering their prices. The way they are growing, the future growth for them will be difficult," Suzuki Motor president Toshihiro Suzuki said on the sidelines of the Japan Mobility show last month, adding that the company doesn't want to engage in competition with Chinese players internationally and will look to target some markets where the competition from them is minimal.

Amid caution about China, Suzuki doubled down on its optimism about India. Maruti exported over 332,000 units in 2025 to destinations including South Africa, Saudi Arabia, Chile, Japan, and Mexico, marking a 17% increase.

While it gains momentum in exports with its best-selling internal combustion engine (ICE) models, such as the Fronx, Jimny, Baleno, and Swift, Suzuki is slowly ramping up its exports of its first electric vehicle, the e-Vitara, to more than 100 countries, with a major focus on Europe as it prepares to take on Chinese players.

Maruti wants to increase its exports to 7.5 lakh units by 2030-31.

In an interview with Mint, Hyundai Motor India’s managing director and chief executive, Unsoo Kim, said that Chinese carmakers have so far done well in electric vehicles, which have not yet gained much traction in emerging markets.

“In the emerging market, electric vehicles are at an early stage. In the Middle East and Africa, and Latin America, electric vehicles are at a very early stage. So most of them are the ICE model at the moment," Kim said.

“Currently, we are focusing more on the ICE model with our current pipeline. But within the 26 models, we have many dedicated EV models for emerging markets. As the emerging market increases electrification, we will do better with our cost competitiveness in India," he said.

For Hyundai India, key export destinations included Saudi Arabia, Mexico, Chile, South Africa and Peru as its exports increased. In FY25, export growth was flat at 163,386 units, against a 2.6% decline in domestic volumes.

Hyundai plans to increase exports to 30% of its total annual sales, up from 21% in FY25. The company's global management has identified India as a hub for emerging global markets.

Puneet Gupta, director at S&P Global Mobility, said that Indian carmakers' strong presence in ICE models will help them in the emerging markets, but there should be some caution about competition from Chinese carmakers.

“With how Chinese carmakers are gaining ground, the competition will become intense for EVs and hybrid vehicles in international markets. Increasingly, global markets will shift towards EVs and hybrids, so Indian carmakers will have to adapt to the competition," he said.

India a hub

Ashish Gupta, brand director at Skoda India, the marquee brand of Volkswagen Group in India, noted in an interview with Mint that exports from India have a key role in growing, and some of the biggest opportunities for exports from India are in the global south.

“Globally, we have gone out and said, India is our most important market outside Europe," Gupta said. Volkswagen Group recorded a 20% growth in exports from India in 2024 to around 53,000 units. Its biggest markets for exports include Africa, Asean, Middle East markets and North America.

Regarding the production of electric vehicles in India, which can also be exported to other markets, Gupta said that all plans are being studied, given that India is set to implement new emission norms from 2027.

With growth in the Indian car market being volatile, exports are playing a key role for all companies. In the financial year 2025, India’s car market grew by 2% to 4.3 million, while it is expected to end FY2026 at 5%.

According to analysts, one of the biggest reasons for these carmakers' bullishness about exports to emerging markets is the fact that India is the largest market for internal combustion vehicles.

According to a June 2024 report from consulting firm AlixPartners, Chinese carmakers are expected to have a 13% market share by 2030 in the global car market, up from 3% in 2024.

Importantly, much of the gain in market share for Chinese carmakers is expected to come from regions like the Middle East, Africa, and Central and South America, where their market share is expected to increase more than fourfold.

Key takeaways

1. Global automakers are deliberately using India's export strength in internal combustion engine vehicles to shield their business from the accelerating global dominance of Chinese electric vehicle exports.
2. The primary export targets such as Middle East, Africa, and Latin America, were chosen because electrification is at a very early stage there, giving Indian-made ICE models an immediate competitive advantage.
3. Chinese automakers are leading global car exports, driven by EVs or hybrids, and are expected to quadruple their market share in the global south by the end of 2025.
4. Suzuki is establishing India as its global export hub for over 100 countries, even as it proceeds with caution regarding Chinese price competition.
5. While current exports focus on ICE, companies like Hyundai are preparing a dedicated pipeline of EV models for emerging markets, acknowledging that Indian automakers must eventually adapt to the global shift to EVs or hybrids to remain competitive.