The ongoing conflict between Israel and Iran will not have any immediate impact on the exports of passenger vehicles (PVs) and two-wheelers from India to the Middle East, according to industry executives and experts.
The Middle East is a key market for the original equipment manufacturers (OEMs) exporting PVs and two-wheelers from India. However, countries like Saudi Arabia and the United Arab Emirates (UAE) account for the bulk of the shipments in the region.
According to data from the industry body Society of Indian Automobile Manufacturers (SIAM), the PV exports from India across the globe jumped 14.62% at 770,364 units in FY25 from 672,105 units in FY24.
Maruti, Hyundai, Nissan, Honda and Volkswagen were the five largest car exporters from India last fiscal.
The two-wheeler exports rose 21.40% at 4,198,403 units in FY25 from 3,458,416 units in the previous fiscal. Among the top five two-wheeler exporters from India in FY25 were Bajaj, TVS, Honda, Yamaha and Hero.
A company executive said that Israel and Iran are not among the top export destinations in the Middle East for the made-in-India cars, and hence, there will not be any immediate impact.
Another company executive said that its two-wheelers are primarily shipped to Saudi Arabia and the UAE in the Middle East.
If the Israel-Iran conflict escalates further, there could be risks to shipments passing through the Strait of Hormuz, an industry expert said, adding that OEMs might then have to look for alternatives.