Japan Becomes Top-Five Destination For Indian Car Exports Amid Soaring Global Demand

Japan has entered the top five destinations for Indian car exports for the first time in FY25, marking a shift in global demand towards vehicles made in India, even from advanced economies.

Carmakers like Suzuki Motor Corp and Honda Motor Co are increasingly using their Indian arms as export hubs.

As per commerce ministry data compiled by SIAM, exports to Japan surged to $616.45 million in the first nine months of FY25, a sharp rise from $220.62 million in all of FY24.

Industry insiders expect further growth after Maruti Suzuki started shipping its Jimny SUV to Japan in January.

“Over decades, we have built a base in quality, cost, efficiency and technology,” said Rahul Bharti, senior executive officer at Maruti Suzuki India.

He further added that the company plans to export its e-Vitara electric SUVs to Japan and Europe.

Indian SUVs & Two-Wheelers Gaining Global Traction

In 2024, Japan exported 5.12 million vehicles, underlining its automotive dominance. Yet, Honda Cars India exported 45,167 Elevate SUVs—mostly to Japan—outpacing its domestic sales of 22,321 units.

Maruti Suzuki also supplies the Fronx and Jimny SUVs to Japan.

The Jimny five-door received nearly 50,000 orders within four days of its launch in Japan, forcing Suzuki to pause new bookings due to overwhelming demand.

“Indian OEMs are not just expanding into Africa and Latin America but are also entering developed markets with globally competitive models,” said Shailesh Chandra, president of SIAM.

Export Momentum Outpaces Domestic Sales Growth

In two-wheelers, Yamaha plans to export premium bikes to Japan. “Costs in India are low. We already export a third of our output to 58 countries,” said Itaru Otani, chairman of Yamaha Motor India Group.

India’s automobile exports rose by 15% to 770,364 vehicles in FY24, far exceeding domestic sales growth of 2%. Compact vehicles make up over 27% of exports, with compact SUVs gaining momentum.

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