In a curious reversal of expectations, six car models manufactured in India are now exported in greater numbers than they are sold domestically. These include Honda’s City and Elevate, Nissan’s Sunny and Magnite, Hyundai’s Verna, and Jeep’s Meridian. Though originally designed for Indian consumers, these vehicles are now enjoying greater acceptance in international markets than on home turf.
An analysis of the FY25 data released by the Society of Indian Automobile Manufacturers (Siam) reveals that the shift towards exports is often driven by a mix of lukewarm domestic reception and the ability of carmakers to identify and cater to global demand effectively.
A striking example is Honda Elevate. Launched in September 2023, amid high expectations from India’s surging SUV market, Elevate initially seemed poised for success. Anticipating strong demand, Honda ramped up production. However, domestic sales failed to meet projections. In response, the company shifted focus to exports, targeting international markets including Japan, where Elevate is sold as WR-V.
In FY25, Honda sold just 22,321 units of Elevate in India but exported more than double that number at 45,167 units. In contrast, the previous year saw 33,642 units sold locally and only 10,273 units exported. By FY25, Honda had increased Elevate production by 54%, reaching 67,488 units. With local sales stagnant, exports emerged as a crucial strategy to maintain production continuity and meet commitments to suppliers.
“It was smart thinking on Honda’s part,” said an automotive analyst. “They realised early on that the Elevate wasn’t resonating with Indian buyers, and pivoted quickly to global markets to ensure that manufacturing lines remained active and suppliers weren’t left in the lurch,” he added.
A similar narrative played out with Hyundai’s Verna. The carmaker had hoped that the 2023 relaunch of the Verna would rejuvenate interest in sedans, a segment rapidly losing ground to SUVs in India. But when demand didn’t materialise, Hyundai leaned on its well-established export framework. The Verna found significant traction in overseas markets such as the Middle East, Africa, and Latin America. Over 50,000 units were exported in FY25 alone, with Hyundai leveraging its global network to make up for tepid domestic sales.
Nissan, too, has used exports to its advantage. The Sunny, a sedan discontinued in India during the 2020 lockdown, continues to be produced solely for international markets. In FY25, Nissan exported around 42,000 units of the Sunny. Over the past five years, more than 180,000 units of the now-defunct-in-India model have been exported, making India a strategic manufacturing hub for the brand.
Meanwhile, Nissan’s Magnite, introduced in 2020 and intended as a mass-market SUV for Indian buyers, has achieved greater success abroad. In FY24, 30,146 Magnite units were sold domestically, while 9,314 were exported. In FY25, production rose sharply to 57,036 units, but with exports rising to 29,155, international shipments nearly equalled local sales, which fell to 27,881 units. Jeep Meridian, too, falls into this trend.
Automotive analysts see this trend as both a testament to India’s manufacturing capability and a sign of deeper issues. “Made-in-India cars doing well abroad shows the country’s production standards are world-class,” said Gaurav Vangaal, associate director at S&P Global Mobility. “But for companies like Honda and Nissan, it also underscores a failure to truly crack the domestic market, even after decades of presence,” he said.
Vangaal adds that despite being the third-largest car market globally, India remains a tough nut to crack for some foreign automakers. Their inability to capture local consumer interest may indicate a need to reassess product strategies and marketing approaches.
Looking ahead, other carmakers are also aiming to turn Indian production into a global success story. Skoda, for example, is preparing to export its moderately successful Slavia sedan to right-hand-drive markets worldwide.
While exporting more than selling domestically may help in maintaining production and supplier relationships, the long-term goal for most manufacturers remains winning over the Indian customer. Until then, global markets continue to offer a lifeline for these Indian-made models.
