Auto firms go global on export boom

Diversification gains urgency as major markets Mexico and South Africa put up import tariffs

- Ayaan Kartik

Automakers and component makers are increasingly expanding manufacturing and assembly operations overseas as exports become a key growth pillar at a time of rising tariffs and geopolitical disruptions.

At least four companies, including Bajaj Auto, Royal Enfield, Sona Comstar and Tata Motors, have underlined benefits of overseas plant expansion or committed additional expenses for improving overseas operations over the past month in key export markets across South America and Asia.

The bullish view comes as exports of vehicles hit a record in FY26 with cumulative vehicle exports growing by 24% to 6.6 million units, as per Society for Indian Automobile Manufacturers (Siam) data.

The need for geographical diversification has become more pressing as two of India’s largest export destinations—Mexico and South Africa—have considered raising tariffs on vehicle imports from India over the past six months. Mexico has already increased tariffs to as much as 50% on passenger vehicle imports and 35% on two-wheeler imports. South Africa is also reviewing its automotive policy, with passenger vehicle tariffs potentially rising to 50%.