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Engineering goods

Export passenger cars

Small cars and SUVs built in India for Africa, the Gulf, Latin America and Japan.

Free to exportHS 8703
HS code
8703
Motor cars and other vehicles principally designed to carry people, including SUVs, electric cars and three-wheeled passenger vehicles (HS 8703).
Export policy
Free to export
New cars are free to export under ITC(HS) Schedule 2. Used cars face restrictions in many buying countries; check DGFT and the destination's rules.
Registrations
3
IEC, GST and those below
India’s exports, 2025-26
US$ 9.04 bn
to 147 countries

What is exported

Car makers in Gujarat, Tamil Nadu, Haryana, Maharashtra and Karnataka export hatchbacks, sedans and SUVs, many in left-hand-drive versions. In 2025-26 India exported about US$ 9 billion under HS 8703; South Africa, Saudi Arabia, Mexico, Japan and the UAE were the largest buyers (Commerce Department data).

Varieties, grades and forms

  • Small and compact petrol carsHatchbacks and compact sedans of 1,000–1,500 cc — the core of Indian car exports.
  • SUVs and utility vehiclesCompact and mid-size SUVs, petrol and diesel, a fast-growing export line.
  • Left-hand-drive export modelsBuilt for Latin America, the Gulf and Africa, which drive on the right.
  • Electric and hybrid carsA small but new line (8703 40, 8703 80).
  • Three-wheeled passenger vehiclesAuto-rickshaws (8703 21 20 and similar lines) for Africa, South Asia and Latin America.

Where it is grown or made

  • GujaratHansalpur and Sanand (Ahmedabad district)
  • Tamil NaduChennai (Sriperumbudur, Oragadam)
  • HaryanaGurugram, Manesar and Kharkhoda
  • MaharashtraPune (Chakan, Talegaon) and Nashik
  • Karnataka and Andhra PradeshBidadi and Anantapur

Export packing

  • New cars ship as roll-on/roll-off cargo on car carriers from Mundra, Pipavav, Chennai, Ennore (Kamarajar) and Mumbai; small volumes go in 40-ft containers on racks.
  • Protective film on paint, seat covers and a transport mode for the battery; fuel kept to the minimum allowed by the shipping line.
  • Each car is listed by VIN, engine number and colour on the packing list and shipping bill.

Who buys abroad

  • Overseas group companies of the car maker
  • National distributors and importers
  • Fleet, taxi and government buyers

The quality buyers ask for

Type approval
UNECE regulations under the 1958 Agreement (WP.29) are accepted in Europe, Japan, South Africa and many others; the USA uses FMVSS self-certification; the Gulf uses GSO standards
Emissions
Euro 6 or equivalent in Europe; Euro 4/5 levels in many export markets — check the importing country
Drive side and climate
Left-hand drive for the Gulf, Latin America and most of Africa; hot-climate cooling packs for the Gulf
Safety
Airbags, ABS, ESC and crash-test ratings demanded by the market (for example Euro NCAP, Latin NCAP)

Certificates

  • Destination type approval / homologationRequiredEach model must be approved in the buying country before it can be registered.
  • GSO / G-Mark (Gulf)Often askedGulf Standardization Organization conformity for vehicles sold in GCC countries.
  • IATF 16949Often askedQuality system required of vehicle plants and their component suppliers.
  • Pre-shipment inspection (some markets)Often askedSome African importing countries require inspection under their conformity programmes before shipment.

Shipping, storage and shelf life

Container load

Ro-Ro car carriers for volume; a 40-ft high-cube container with racks typically holds about 3–4 small cars (trade practice).

How it travels

Sea from Mundra, Pipavav, Chennai, Kamarajar (Ennore) and Mumbai.

Storage

Port car parks; batteries on transport mode, paint protected by film.

What goes on the pack and carton

  • VIN on the chassis and a certification label as the market requires.
  • Owner's manual, warranty booklet and tyre and fuel labels in the market language.
  • Country of origin ('Made in India') on the product or its packing, as the buyer's customs require.
Where to get it tested

ARAI (Pune), ICAT (Manesar) and GARC (Chennai) test vehicles and can test to UNECE requirements; ask the importer which technical service their approval authority accepts.

Benefits of exporting this product

Where to register

  • EEPC India (Engineering Export Promotion Council)RCMC — motor vehicles are under EEPC (DGFT Appendix 2T).eepcindia.org ↗

Quality and checks

  • Type approval in the buying country: UNECE regulations (WP.29), US FMVSS, Gulf GSO standards or national rules.
  • Emission level, drive side (left or right) and safety features must match the market.
  • Some African countries need pre-shipment inspection under their conformity programmes.
How to start small

Car exports are run by manufacturers through their own networks. An MSME joins the chain by supplying components to Indian car plants or by exporting aftermarket parts and accessories — see the auto-parts guide.

Where new exporters go wrong

  • Buying cars from dealers for export without the maker's support — homologation and warranty fail abroad.
  • Wrong drive side or emission level for the market.
  • Transit damage when cars are not protected for Ro-Ro handling.

Documents this product needs

Schemes that apply

Sources (5)
  1. Department of Commerce, Export Import Data Bank — India's exports of HS 8703 by country, 2025-26
  2. DGFT — Appendix 2T: Export Promotion Councils and the products under each
  3. DGFT — ITC(HS) export policy search (Schedule 2)
  4. UNECE — World Forum for Harmonization of Vehicle Regulations (WP.29)
  5. NHTSA — Importation and certification of motor vehicles and equipment

Trade data

Indian passenger cars exports in numbers

From the Department of Commerce’s TradeStat, country by country. US$, Indian financial years (April–March).

Exports in 2025-26
US$ 9.04 bn
+16% a year on average, 2020-21 to 2025-26
Change from 2024-25
↑ +24.9%
US$ 7.24 bn → US$ 9.04 bn
Buyer countries
147
Average export price
US$ 6827.23
per kg · 1,324 tonnes shipped · US$ 7032.97 the year before
South Africa: US$ 1.5 bnSaudi Arabia: US$ 1.26 bnMexico: US$ 1.12 bnJapan: US$ 807 mnUnited Arab Emirates: US$ 481 mnChile: US$ 279 mnSpain: US$ 270 mnPeru: US$ 251 mnSri Lanka: US$ 213 mnUnited Kingdom: US$ 170 mnColombia: US$ 150 mnNigeria: US$ 137 mnAustralia: US$ 130 mnMorocco: US$ 91.4 mnKuwait: US$ 88.2 mnGhana: US$ 83.1 mnNepal: US$ 82.5 mnBelgium: US$ 76.3 mnQatar: US$ 67.1 mnPhilippines: US$ 64.8 mnCôte d’Ivoire: US$ 64.8 mnSouth Africa: US$ 1.5 bnSouth AfricaSaudi Arabia: US$ 1.26 bnSaudi ArabiaMexico: US$ 1.12 bnMexicoJapan: US$ 807 mnJapanUnited Arab Emirates: US$ 481 mnChile: US$ 279 mnChileSpain: US$ 270 mnSpainPeru: US$ 251 mnSri Lanka: US$ 213 mnUnited Kingdom: US$ 170 mnColombia: US$ 150 mnNigeria: US$ 137 mnAustralia: US$ 130 mnMorocco: US$ 91.4 mnKuwait: US$ 88.2 mnGhana: US$ 83.1 mnNepal: US$ 82.5 mnBelgium: US$ 76.3 mnQatar: US$ 67.1 mnPhilippines: US$ 64.8 mnCôte d’Ivoire: US$ 64.8 mnIndia
Where Indian passenger cars goes — among our 80 countries, 2025-26
2020-21: US$ 4.3 bn4.3k2020-212021-22: US$ 5.93 bn5.9k2021-222022-23: US$ 6.68 bn6.7k2022-232023-24: US$ 6.62 bn6.6k2023-242024-25: US$ 7.24 bn7.2k2024-252025-26: US$ 9.04 bn9.0k2025-26
India’s passenger cars exports, year by year · US$ million

The price cycle

India’s average export price per kg each year (total value ÷ total quantity). Highest in 2024-25, lowest in 2021-22 — a 32% swing between them. Keep this swing in mind when you quote.

2020-21: US$ 5371.38 per kg2021-22: US$ 5340.42 per kg5340.422022-23: US$ 6548.54 per kg2024-25: US$ 7032.97 per kg7032.972025-26: US$ 6827.23 per kg6827.232020-212021-222022-232023-242024-252025-26
Average export price of Indian passenger cars · US$ per kg · dotted = year in between not available

What next: a projection from the trend

The past trend carried forward — not a forecast by any authority. Sudden changes in policy, prices or demand are not in it.

2020-21: US$ 4.3 bn2020-212021-22: US$ 5.93 bn2021-222022-23: US$ 6.68 bn2022-232023-24: US$ 6.62 bn2023-242024-25: US$ 7.24 bn2024-252025-26: US$ 9.04 bn2025-262026-27: US$ 9.96 bn (US$ 8.75 bn – US$ 11.3 bn)10.0k2026-272027-28: US$ 11.3 bn (US$ 9.75 bn – US$ 13 bn)11k2027-28
India’s passenger cars exports and projection · hollow bars = projection, line = likely range
By 2027-28: US$ 11.3 bn

Likely range US$ 9.75 bn to US$ 13 bn.

Trend
+13.1% a year
Fit (R²)
0.88
Based on
6 years of official figures

Method: a straight line through the logarithm of yearly exports (log-linear regression); range = ±1 standard error.

Biggest buyer countries

By value in 2025-26. Change is against 2024-25.

Name2025-26Change
1South AfricaUS$ 1.5 bn+20.2%
2Saudi ArabiaUS$ 1.26 bn+5.2%
3MexicoUS$ 1.12 bn+19.8%
4JapanUS$ 807 mn-0.8%
5United Arab EmiratesUS$ 481 mn-6%
6ChileUS$ 279 mn+8.5%
7SpainUS$ 270 mn+59,993.3%
8PeruUS$ 251 mn+56.9%
9Sri LankaUS$ 213 mn+5,980.6%
10United KingdomUS$ 170 mn+8,668.6%
11ColombiaUS$ 150 mn+99.9%
12NigeriaUS$ 137 mn+122.8%

Where demand is rising and falling

Only countries that buy at least US$ 1 million or 1% of India’s exports of this product. Change from 2024-25 to 2025-26.

High demand

  1. SpainUS$ 450k → US$ 270 mn+59,993.3%
  2. United KingdomUS$ 1.9 mn → US$ 170 mn+8,668.6%
  3. Sri LankaUS$ 3.5 mn → US$ 213 mn+5,980.6%
  4. AngolaUS$ 45.6 mn → US$ 114 mn+150.1%
  5. MoroccoUS$ 38.7 mn → US$ 91.4 mn+136.4%
  6. NigeriaUS$ 61.5 mn → US$ 137 mn+122.8%
  7. ColombiaUS$ 75.1 mn → US$ 150 mn+99.9%
  8. PeruUS$ 160 mn → US$ 251 mn+56.9%

Low demand

  1. IndonesiaUS$ 142 mn → US$ 61.5 mn-56.8%

Which forms sell, and at what price

India’s exports by 8-digit tariff line, 2025-26. Average price = total value ÷ total quantity (TradeStat): the average of every shipment on that line, not the price of any one deal.

Tariff lineValue 2025-26ChangeQuantityAverage price
Motor car with cylndr cpcty>=1000cc but < 1500cc with sprk-igntn8703 22 91 · Vehicles, with only spark-ignition internal combustion piston engine, cylinder capacity over 1000 but not…US$ 5.5 bn+7.9%632k piecesUS$ 8700.26 per piecewas US$ 8807.88
Motor car with cylndr cpcty<=1000 with sprk-igntn8703 21 91 · Vehicles, with only spark-ignition internal combustion piston engine, cylinder capacity not over 1000ccUS$ 1.56 bn+53.9%202k piecesUS$ 7708.19 per piecewas US$ 7619.22
Vehicles, with only electric motor for propulsion — motor cars8703 80 30US$ 702 mn+800.1%29k piecesUS$ 24082.22 per piecewas US$ 17253.82
Three-wheeled vehicles with cylndr cpcty<=1000 with sprk-igntn8703 21 20 · Vehicles, with only spark-ignition internal combustion piston engine, cylinder capacity not over 1000ccUS$ 614 mn+54.2%396k piecesUS$ 1551.16 per piecewas US$ 1581.33
Motor car with cylndr cpcty>=1500cc but <3000cc with sprk-igntn8703 23 91 · Vehicles, with only spark-ignition internal combustion reciprocating piston engine, cylinder capacity over…US$ 375 mn-22.7%31k piecesUS$ 12050.94 per piecewas US$ 11501.64
Motor car cylndr cpcty>1500 cc bt<=2500 ccwth cmprsn igntn8703 32 91 · Vehicles, with only compression-ignition internal combustion piston engine, cylinder capacity over 1500 but…US$ 88.6 mn+13.2%5k piecesUS$ 19000.21 per piecewas US$ 22208.97
Other vehicles with cylndr cpcty>=1000cc but <1500cc with sprk-igntn8703 22 99 · Vehicles, with only spark-ignition internal combustion piston engine, cylinder capacity over 1000 but not…US$ 60.1 mn+1,134.9%8k piecesUS$ 7918.37 per piecewas US$ 11995.07
Motor cars with cmprsn igntn with cylndr cpcty <1500cc8703 31 91 · Vehicles, with only compression-ignition internal combustion piston engine, cylinder capacity not over 1500ccUS$ 42 mn+25.5%3k piecesUS$ 14595.35 per piecewas US$ 14120.62
Vehicles, with both spark-ignition internal combustion piston engine and electric motor for propulsion… — motor cars8703 40 30US$ 24.8 mn+482.6%2k piecesUS$ 16300.20 per piecewas US$ 18398.27
Other vehicles with sprk-igntn intrnl cmbstn rcprctng piston engne of cylindr capacity<1000cc8703 21 99 · Vehicles, with only spark-ignition internal combustion piston engine, cylinder capacity not over 1000ccUS$ 21.1 mn+22.4%7k piecesUS$ 2964.79 per piecewas US$ 2651.05
Motor car with cylndr cpcty>2500 cc with cmprsn igntn8703 33 91 · Vehicles, with only compression-ignition internal combustion piston engine, cylinder capacity over 2500ccUS$ 20.8 mn+521.6%788 piecesUS$ 26345.18 per piecewas US$ 25692.31
Other vehicles,with cmprsn igntn intrnl cmbstn piston engine(diesel/semi-disesel), of a cylinder capacity<=1500 cc8703 31 99 · Vehicles, with only compression-ignition internal combustion piston engine, cylinder capacity not over 1500ccUS$ 10.5 mn+58.3%6k piecesUS$ 1857.17 per piecewas US$ 2151.45
Motor car with cylndr cpcty>=3000cc with sprk-igntn8703 24 91 · Vehicles, with only spark-ignition internal combustion reciprocating piston engine, cylinder capacity over…US$ 7.1 mn+56.7%31 piecesUS$ 230000.00 per piecewas US$ 74590.16
Vehicles, with only electric motor for propulsion — three-wheeled vehicles8703 80 40US$ 4.7 mn+263.8%2k piecesUS$ 2281.72 per piecewas US$ 1610.90

The world market

Each country’s own recorded exports and imports in UN Comtrade, 2023 (the latest year nearly every country has reported).

World imports
US$ 957.8 bn
2023
India among exporters
#23
of 160 countries
India’s share of world exports
0.7%
US$ 6.72 bn
Left for others to win
US$ 953.4 bn
exported by other countries

Top exporters — your competitors

  1. 1GermanyUS$ 179.2 bn 18.7%
  2. 2JapanUS$ 110.1 bn 11.5%
  3. 3ChinaUS$ 77.6 bn 8.1%
  4. 4Rep. of KoreaUS$ 68.3 bn 7.1%
  5. 5USAUS$ 63 bn 6.6%
  6. 6MexicoUS$ 57.4 bn 6%
  7. 7SpainUS$ 40.6 bn 4.2%
  8. 8CanadaUS$ 37.8 bn 3.9%
  9. 9United KingdomUS$ 37 bn 3.8%
  10. 10SlovakiaUS$ 33.1 bn 3.4%

Biggest buyers in the world

  1. 1USAUS$ 210.3 bn 22%
  2. 2GermanyUS$ 80 bn 8.4%
  3. 3United KingdomUS$ 56.5 bn 5.9%
  4. 4FranceUS$ 46.5 bn 4.9%
  5. 5ChinaUS$ 45.9 bn 4.8%
  6. 6CanadaUS$ 38.6 bn 4%
  7. 7ItalyUS$ 36.5 bn 3.8%
  8. 8BelgiumUS$ 31.9 bn 3.3%
  9. 9United Arab EmiratesUS$ 25.5 bn 2.7%
  10. 10AustraliaUS$ 25 bn 2.6%

Opportunity: what these countries buy from the world, and from India

Each country’s own recorded imports in UN Comtrade, latest year it has reported. The long light part of each bar is demand other countries are filling today.

United States of AmericaUS$ 219.5 bnIndia 0% · gap US$ 219.5 bn
GermanyUS$ 73.2 bnIndia 0% · gap US$ 73.2 bn
United KingdomUS$ 56.5 bnIndia 0% · gap US$ 56.5 bn
FranceUS$ 44.3 bnIndia 0% · gap US$ 44.3 bn
CanadaUS$ 40.5 bnIndia 0% · gap US$ 40.5 bn
ChinaUS$ 38.3 bnIndia 0% · gap US$ 38.3 bn
ItalyUS$ 36.7 bnIndia 0% · gap US$ 36.7 bn
AustraliaUS$ 25 bnIndia 0.4% · gap US$ 24.9 bn
United Arab EmiratesUS$ 25.5 bnIndia 2.5% · gap US$ 24.9 bn
SpainUS$ 23.4 bnIndia 0% · gap US$ 23.4 bn

TradeStat’s 2023-24 quantities are double-counted, so that year is left out of the price. Sources: TradeStat — Export Import Data Bank, Department of Commerce · UN Comtrade database (United Nations Statistics Division) · Figures taken 29 October 2026.

Step by step

How to export passenger cars

India is one of the world's largest car markets and a growing exporter of small cars and SUVs, built by Japanese, Korean and Indian makers. Competitors are China, which has become the largest car exporter, and Thailand, Mexico and Turkey. In 2025-26 South Africa, Saudi Arabia, Mexico, Japan and the UAE were the largest buyers of Indian cars (Commerce Department data). Car exports are run by manufacturers through their global networks, so a new exporter's real entry points are components, accessories and after-sales parts. Openings for makers are in compact SUVs for Africa, Latin America and the Gulf, and in electric vehicles.

  1. 01Know who exports

    Cars are exported by the maker; dealers and traders cannot usually buy new cars in India for export without the maker's consent.

  2. 02Register with EEPC India

    Motor vehicles are under EEPC.

  3. 03Homologate the model

    Get type approval for each market; adapt drive side, emissions and safety.

  4. 04Appoint distributors

    Set up dealers, parts stock and service in the buying country.

  5. 05Book Ro-Ro space

    Car carriers sail on fixed schedules; plan production to the vessel.

  6. 06Ship and claim benefits

    File the shipping bill on ICEGATE with the correct 8-digit HS code, declare RoDTEP and drawback, and keep the mill or test certificates with the export file.

  7. 07Get paid safely

    Use an LC or documents against payment with new buyers, take ECGC cover for open-account sales, and close the export with an e-BRC once the money arrives.

Meet buyers

Trade fairs

Questions

Questions about exporting passenger cars

Can I buy cars in India and export them?
The policy is free, but the buyer country must accept the model and makers control their dealer networks. Grey exports often fail homologation or warranty checks abroad.
What incentives apply to cars?
RoDTEP of 0.5–1.3% depending on the line (often with a per-car cap) and drawback of 2.1–4.7% depending on engine size and gearbox.
Why do markets need left-hand drive?
Countries that drive on the right (the Gulf, Latin America, much of Africa) require the steering wheel on the left.
Can I export used cars?
Check DGFT policy and the buyer country — many countries limit the age of imported used cars or ban them.
How can an MSME join the car export chain?
By supplying components to car plants in India (which export) or exporting aftermarket parts and accessories directly.
Sources (8)
  1. EEPC India (Engineering Export Promotion Council) — official site
  2. UNECE — World Forum for Harmonization of Vehicle Regulations (WP.29)
  3. NHTSA — Importation and certification of motor vehicles and equipment
  4. ARAI (Automotive Research Association of India), Pune — testing and homologation
  5. ICAT (International Centre for Automotive Technology), Manesar
  6. DGFT — Appendix 4R, RoDTEP schedule for DTA exports w.e.f. 10.10.2024 (Notification 32/2024-25); rates continued to 31.12.2026 by Notification 41/2026-27
  7. Gazette of India — Notification 77/2023-Customs (N.T.) dated 20.10.2023: All Industry Rates of duty drawback
  8. Department of Commerce, Export Import Data Bank — India's exports of HS 8703 by country, 2025-26

Who buys Indian passenger cars

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