Carmakers tap EMs to shield exports amid China threat

Firms are increasingly using India as a cost-competitive manufacturing base and export hub

- Ayaan Kartik [e-mail]

Global carmakers are looking to boost exports from India to counter the rising dominance of Chinese firms.

(BLOOMBERG)

Global carmakers want to shield exports of their Indian units from the threat of Chinese carmakers’ sales surge by using the edge of the country's carmakers in emerging markets like the Middle East, South America and Africa, where electrification has not yet gained a foothold.

Suzuki Motor Corp., Hyundai Motor Corp., and the Volkswagen Group are among the companies looking toramp up exports from India, with a special focus on markets where Chinese carmakers have not yet established a foothold.

‘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.