Tata, Bajaj, Royal Enfield aim global expansion amid export boom and tariff threats

Indian automobile manufacturers, including major players like Royal Enfield, Bajaj Auto, and Tata Motors, are increasingly expanding their manufacturing and assembly operations globally as exports are becoming a significant growth pillar for them, at a time when higher tariffs and geopolitical disruptions threaten to play spoilsport. Mint has reported that Bajaj Auto, Royal Enfield, and Tata Motors have underlined the benefits of overseas plant expansion or committed additional expenses for improving their overseas operations over the past month in some of their key export markets across South America and Asia.

In FY26, the exports of vehicles from India hit an all-time high mark. Cumulative vehicle exports from India grew by 24% to 6.6 million units, as data from the Society for Indian Automobile Manufacturers (SIAM) revealed. The major vehicle exporters in India now aim to sustain this growth momentum, and this is why the expansion in overseas operations is taking place.

The report has stated that the need for geographical diversification has become more pressing as two of India's largest automobile export markets - Mexico and South Africa have considered raising tariffs on vehicle imports from India over the past six months. Mexico has already increased tariffs to as much as 50% on passenger vehicle imports and 35% on two-wheeler imports, while South Africa is also reviewing its automotive policy, with passenger vehicle tariffs likely to rise to 50%.

Brazil and Mexico playing a key role for two-wheeler majors

Brazil is playing a key role in the Indian two-wheeler manufacturers' strategy of global expansion. Royal Enfield is reportedly preparing to set up its own assembly plant in Brazil to deepen its presence in one of its fastest-growing overseas markets.

Another homegrown two-wheeler giant, Bajaj Auto, has reportedly said that its first manufacturing plant outside India, located in Brazil, helped deliver its best-ever performance in the country.

This comes months after two-wheeler giants Hero MotoCorp, TVS, and Bajaj noted that the existence of their respective assembly plants in Mexico, which is one of the largest export markets for them, will help in offsetting the higher tariff impact in the country.

Tata plans to establish assembly plants in major global markets

Tata Motors has also identified international expansion as a key pillar of its long-term growth strategy. The country's largest truck and bus maker reportedly said that it plans to establish assembly plants in markets where sales volumes reach a threshold that justifies greater localisation. Interestingly, this comes after Tata Motors won a large order of 70,000 units of vehicles in Indonesia in February 2026, which came under intense scrutiny there over a lack of value addition.

Mint has quoted Tata Motors managing director and chief executive Girish Wagh as saying that the company operates several assembly plants across the globe in countries like Bangladesh and South Africa. "We have been having semi-knockdown units assembly facilities, especially in those countries where the duty differential is very high. When a particular market becomes significant in terms of volume, we will increase our level of localisation. We will keep rolling out these plants as these markets hit the volume threshold," he reportedly said, while adding that governments across the world increasingly expect manufacturers to create local jobs, making localisation an important consideration for global expansion.

Among others, Mahindra, which has a presence in both passenger vehicle and commercial vehicle segments, is looking to set up a plant in South Africa to protect itself against any higher tariffs.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.