India-made electric cars recorded a 14-fold increase in exports during the June quarter as higher fuel prices, resulting from the US-Iran war, encouraged consumers worldwide to seek more affordable personal transportation options.

The increase in exports has been driven largely by Maruti Suzuki's e-Vitara. The rise in export demand is also contributing to the overseas expansion plans of Indian carmakers.

In response to changing international market conditions, Tata Motors and Mahindra & Mahindra (M&M) are expanding plans to increase electric vehicle exports to right-hand-drive markets worldwide. Maruti Suzuki entered new markets, primarily in Europe, during the previous quarter with the e-Vitara. The UK was the largest export destination, followed by South Africa.

Launches to support export demand

In response to growing domestic and international demand, Maruti Suzuki plans to introduce four additional electric vehicles by 2030.

"Maruti Suzuki exports more cars from India than the rest of 17 car manufacturers put together," said Rahul Bharti, Senior Executive Officer, Maruti Suzuki.

Bharti said that India-made vehicles are well received in developed markets such as Europe and Japan due to their quality and technology. He added that Maruti Suzuki entered new export markets during the previous quarter, most of them in Europe.

Tata Motors Passenger Vehicles, which recently began exporting electric vehicles to neighbouring countries in South Asia, is seeking to expand its export operations.

"The company wants to expand electric vehicle exports to additional markets in Asia, Africa, Europe and the Pacific over the next few years," said a senior industry executive familiar with the company's plans, speaking on condition of anonymity. "At present, domestic demand remains strong. However, with new investments in capacity expansion, the company intends to increase its presence in overseas markets."

Tata Motors Passenger Vehicles recently announced plans to invest up to Rs. 400 billion over the next five years to increase its annual production capacity by FY31. The company has also finalised plans to expand its electric vehicle portfolio over the same period.

According to people familiar with the matter, Tata Motors plans to introduce electric vehicles based on the Avinya platform in Europe within the next two to three years.

The company is working with its British luxury vehicle subsidiary, Jaguar Land Rover, on vehicle engineering and software development to meet customer requirements in advanced automotive markets. The UK is expected to become one of Tata Motors' first new vehicle export destinations. The company has begun preparations to enter the market, including vehicle certification, compliance with local regulations, and the establishment of distribution and after-sales operations.

Mahindra & Mahindra has also started developing specific variants of the BE 6 and XEV 9e SUVs for the UK market to take advantage of opportunities arising from the India-UK Comprehensive Economic and Trade Agreement (CETA).

"For exports, we would want to take our EVs out, and we've said that we look at right-hander markets in the world first, and there are two or three of them that we are evaluating. If we succeed there, which we hope we will, then we will look at left-hand-drive, western world markets, western European markets as well. We have always said we'll do it in a phased manner and learn along the way, and not open up many markets at the same time," said Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sectors, Mahindra & Mahindra.