Archive · 29 Jan 2026
India's Car Exports Face Tariff Turbulence
India's car companies, like Maruti Suzuki and Hyundai, are facing problems.
Two countries, South Africa and Mexico, are thinking about or have already raised the taxes (tariffs) on cars imported from India.
This could make it harder for Indian car companies to sell their cars in these countries.
South Africa is a big market for Maruti Suzuki, and Mexico is important for Hyundai.
The Indian car companies are worried because they rely on exports to grow.
They might have to find new markets or adjust their plans.
The situation is still uncertain, and no final decisions have been made yet.
South Africa is considering raising import duties on cars from 25% to 50%, affecting Indian automakers like Maruti Suzuki and Hyundai.
Mexico has already increased tariffs on car imports from India from 15-20% to 50%, impacting Indian exports worth $938 million in FY25.
Maruti Suzuki's shares fell 2.39% and Hyundai's shares fell 0.61% due to the potential impact on their export markets.
South Africa's review of its automobile industry policy is ongoing, with no final decisions made yet.
Indian automakers exported $1.2 billion worth of passenger vehicles to South Africa in FY25, a 26% increase from the previous year.
- Who
- Indian automakers, particularly Maruti Suzuki and Hyundai Motor India
- What
- Potential tariff increases on car imports in South Africa and Mexico
- When
- South Africa is reviewing its policy; Mexico has already increased tariffs
- Where
- South Africa and Mexico
- Why
- To protect local automobile industries and reduce dependence on imports
- Maruti Suzuki exports to South Africa
- 95,597 cars in FY25
- Hyundai's export growth in FY25
- 0.1%
- India's car exports to South Africa in FY25
- $1.2 billion
- India's car exports to Mexico in FY25
- $938 million
- South Africa's current import duty on cars
- 25%
- Proposed import duty increase in South Africa
- 50%
- Maruti Suzuki's share price drop
- 2.39%
- Hyundai's share price drop
- 0.61%