India’s motor car exports are witnessing healthy growth in the European Free Trade Association (EFTA) market, Commerce and Industry Minister Piyush Goyal has said, highlighting expanding opportunities for Indian automobile manufacturers in the region.
The EFTA comprises Switzerland, Norway, Iceland and Liechtenstein. India’s growing automobile exports to these markets are creating additional opportunities for manufacturers and strengthening the country’s presence in high-value European markets.
Goyal said the increase in vehicle exports reflects the growing acceptance of Indian-made automobiles in international markets. The development also highlights the potential for India’s automotive industry to expand its export footprint through new trade partnerships.
India and EFTA signed a Trade and Economic Partnership Agreement (TEPA) in March 2024, covering trade in goods and services as well as investment-related commitments. The agreement provides a framework for expanding commercial ties between the two sides.
For Indian automobile companies, improved market access can support greater exports of passenger vehicles and other automotive products. The sector also benefits from India’s established manufacturing base and expanding capabilities across the automotive supply chain.
The growth in exports to EFTA comes as India seeks to diversify its export destinations and increase the share of manufactured products in overall merchandise exports. Automobile and auto-component exports are expected to remain an important part of these efforts.
The government is also focusing on strengthening trade agreements and improving market access for Indian products. Growing automobile shipments to EFTA markets could provide further opportunities for Indian manufacturers as trade ties with the region deepen.