Indian manufacturers lift export earnings 29% as localisation offsets import costs

Consumer and auto manufacturers increased exports and localisation to protect margins amid global cost pressures. Export earnings rose 29% to more than ₹1 lakh crore in the last fiscal year, while festive marketing spending reportedly increased by up to 20%.

— FiledTue, 25 Aug, 2026, 22:49 IST·First seen Tue, 25 Aug, 2026, 22:49 IST·Source ET Retail

What happened

Hero MotoCorp · Indian manufacturers, including consumer and auto companies, raised exports and localisation to offset import costs. Export earnings rose 29% to

Key facts

  • Export earnings grew 29%
  • More than ₹1 lakh crore in export earnings
  • Festive marketing spending increased by up to 20%

Why this matters

Prioritise partnerships or acquisitions that add local supplier capacity, export distribution and manufacturing capabilities in high-growth consumer and auto categories.

What to watch

  • Monthly export order growth by consumer durables, vehicles, auto components and electronics manufacturers.
  • Local-content ratios, import-data trends and announced supplier capacity additions.
  • Rupee movement, ocean freight rates and prices for metals, semiconductors and energy.
  • Festive-season retail sell-through, dealer inventory days and promotional-spend intensity.
  • Export-market demand indicators in the US, Europe, Middle East and Africa.
  • Government changes to production-linked incentives, tariffs, logistics support or export rebates.
  • Prioritise localisation of high-value imported parts, electronics and packaging where landed-cost volatility remains elevated.
  • Use export-generated cash flow to support targeted festive media, financing offers and dealer inventory rather than broad-based discounting.
  • Build market-specific export portfolios and hedge currency, freight and commodity exposures to preserve realised export margins.
  • Secure long-term agreements with domestic suppliers and invest in supplier quality, traceability and capacity upgrades.
  • Monitor whether domestic demand can absorb higher production if export orders decelerate.