Destination Europe: India's EV exports surge makes a mark in the West

But the country's shipments to traditional strongholds in Africa and Latin America remain tethered to internal combustion engines

India’s car exports are being talked about after Mexico, the third-largest market for such shipments, this week levied tariffs of up to 50 per cent on incoming goods from India and China. As India scrambles to secure the Mexican market, its car exports have found new avenues in Europe in FY26 and might cushion the impact of the newly imposed tariffs.

 

India’s car exports increased by 20.53 per cent to $6.23 billion in the first seven months of FY26 (April-October) compared to the same period in FY25. During this time, exports to Europe more than doubled, rising from $140 million to $318 million. These shipments accounted for 5.1 per cent of India’s total motor vehicle exports — up from a 2.7 per cent share in the same period last year.

 

Electric vehicles (EVs) are slowly moving towards becoming a major component of India’s motor vehicle exports, including cars. EV exports skyrocketed from a mere $1.55 million in FY21 to $80.28 million in FY25, and grew almost 330 per cent to $247.9 million in the first seven months of FY26 compared to the same period last year.

 

The share of EVs in India’s total car exports rose from 0.9 per cent in FY25 to 4.02 per cent in FY26. These figures exclude hybrid vehicles, in which India holds a minuscule export share.

 

India’s EV export market has undergone a significant transformation. In FY25 (April-October), shipments were highly concentrated, with Nepal (44.47 per cent), Indonesia (30.53 per cent) and Japan collectively accounting for more than 90 per cent of the total market.

 

By FY26 (April-October), the dominance of Indonesia and Japan collapsed to just 0.02 per cent and 2.49 per cent, as India’s export focus pivoted sharply westward. Europe now commands the lion’s share, accounting for over 83 per cent of EV shipments between April and October, while Nepal’s once-dominant stake has receded to 10.46 per cent.

 

In a striking shift, nearly two out of every three cars India exported to Europe in the first seven months of FY26 were electric. Spain and the United Kingdom emerged as the top destinations, commanding shares of 35.64 per cent and 25.19 per cent — a meteoric rise from near-zero participation just a year ago. 

 

However, India’s share in the European EV market is negligible compared to China, South Korea and Japan. The European Union in 2024 imported more than half of its EVs from China, which had a share of just over 1 per cent in 2019.

 

While the European surge paints a promising picture, India’s exports to traditional strongholds in Africa and Latin America remain tethered to internal combustion engines. To secure its future as a global automotive hub, India must now replicate its European EV success across its major markets in Africa and Latin America.