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Jeet B Bhayani (SEBI RA)

26th Dec · SEBI-Registered Analyst

India's automotive sector has undergone a significant transformation since November 2025, when SUVs emerged as the leading export vehicle category, overtaking conventional passenger cars in global shipments, according to a report issued today. Utility vehicles (UVs), such as SUVs, multi-purpose vehicles (MPVs), and multi-utility vehicles (MUVs), are seeing a swift rise in popularity due to evolving consumer preferences and robust demand in major export markets. This change signifies a shift from being mainly known as a center for exporting compact passenger vehicles. In November, utility vehicle exports hit 42,993 units, surpassing car exports at 40,519 units and indicating a trend towards more valuable vehicles in global markets. Utility vehicle exports rose from April to November 2025 (2.88 lakh units), in contrast to the previous year's figures for the same timeframe (2.22 lakh units); Car exports saw a slight increase during this period (2.71 lakh units vs. 3.04 lakh units). Industry experts anticipate that these trends could persist through FY26, leading to the first fiscal year where utility vehicles officially exceed passenger cars in exports. This trend has been backed by major manufacturers such as Maruti Suzuki, Hyundai Motor India, and Nissan. These producers are crucial contributors to the compact sub-4-metre SUV segment, which constitutes approximately 62% of India's overall utility vehicle exports. As SUVs become more significant in India's export composition, their rising prevalence reflects the continuous advancement of India's manufacturing capacity, enhancing the automotive sector's role in an export-driven growth approach.

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