Economic Survey 2026: Rising automobile exports reflect growing global acceptance of India-made vehicles

New Delhi: India’s automobile exports are increasingly reflecting the growing acceptance of vehicles manufactured in the country across global markets, the Economic Survey 2025–26 said.

According to the Survey, the industry exported more than 53 lakh vehicles across passenger, commercial, two- and three-wheelers in FY25 and recorded double-digit growth in exports in the first half of 2025–26. The trend underscores India’s strengthening position as a global automotive manufacturing hub.

The Survey attributed the growth to a robust recovery in demand in the post-pandemic period, which has supported higher production and domestic sales. Over the past decade, vehicle production has risen by nearly 33 per cent, from FY15 to FY25, highlighting sustained expansion in the sector.Backed by a strong manufacturing base and a large auto component ecosystem, the automobile industry employs more than 30 million people directly and indirectly and contributes close to 15 per cent of India’s total GST collections, the Survey noted.The sector continues to play a critical role in India’s economic growth, with the country emerging as the world’s largest market for two-wheelers and three-wheelers, and the third-largest globally for passenger and commercial vehicles combined.

Key push from policy side
Policy support has also been a key growth driver, particularly in electric mobility. Government initiatives such as the Production-Linked Incentive (PLI) scheme for automobiles and auto components, the PLI scheme for advanced chemistry cell battery storage, the PM E-DRIVE, and the PM e-Bus Sewa Payment Security Mechanism have accelerated electric vehicle adoption in recent years.

The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC), notified in March 2024, has further strengthened the sector’s growth outlook, the Survey said.

Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025–26 in the Lok Sabha on Thursday, outlining the government’s assessment of the economy ahead of the Union Budget.