From Chennai to Zurich: India Ships $18.6M in Cars to Switzerland as TEPA Opens the Door

In November 2025, something unexpected happened in Swiss customs data: India — a country not typically associated with European automobile markets — shipped $10.9 million worth of motor vehicles to Switzerland in a single month. December added another $7.6 million. By year's end, Indian automobile exports to Switzerland had reached $18.6 million, up from near zero the previous year.

The surge came just weeks after the India-EFTA Trade and Economic Partnership Agreement (TEPA) entered into force on 1 October 2025, eliminating tariffs on a range of industrial goods including vehicles.

From Chennai and Pune to Swiss Showrooms

India's automobile export ecosystem is concentrated in three major clusters. Chennai, Tamil Nadu — often called the "Detroit of India" — hosts plants for Hyundai Motor India, Renault-Nissan, and BMW's supplier network. Pune, Maharashtra is home to Tata Motors and a dense web of auto component manufacturers. Gurugram, Haryana houses Maruti Suzuki's headquarters, India's largest carmaker by volume.

Several Indian automakers have been expanding their European footprint. Tata Motors (NSE: TATAMOTORS), through its subsidiary Jaguar Land Rover, already has deep roots in European markets. But the company has also been pushing its own-brand electric vehicles, including the Tata Nexon EV and Tata Punch EV, into new export markets.

Mahindra & Mahindra (NSE: M&M) launched its Born Electric range of SUVs at European auto shows, with Swiss and Nordic markets among its initial targets. MG Motor India, the Indian subsidiary of China's SAIC Motor, has been exporting vehicles assembled at its Gujarat plant to multiple European destinations.

"India's automobile exports crossed $10 billion for the first time in FY25. The EFTA markets represent a new frontier for Indian automakers looking beyond traditional destinations."

A $8.1 Billion Market — India's Entry Point

Switzerland imported $8.1 billion worth of motor vehicles in 2025, making it one of Europe's most valuable per-capita car markets. Germany dominates with the lion's share, followed by other EU producers. India's $18.6 million represents just 0.2% of the total — but the trajectory is what matters.

Prior to TEPA, Indian vehicles faced Swiss MFN tariffs that made them uncompetitive against EU producers entering duty-free under existing agreements. The October 2025 tariff elimination changed that calculus overnight.

India currently ranks #26 among suppliers of motor vehicles to Switzerland — a position that barely existed 12 months ago.

Jobs and Supply Chain Impact

India's automotive sector employs over 37 million people directly and indirectly, according to SIAM. The $18.6 million in Swiss exports, while modest by industry standards, represents the beginning of a supply chain that reaches deep into India's industrial heartland.

An estimated 560 direct jobs and 1,490 indirect jobs across component suppliers, logistics firms, and port operators are linked to this trade flow. Around 65% of India's auto component sector consists of MSMEs — small workshops in Pune, Chennai, and the NCR region that manufacture everything from brake pads to wiring harnesses.

The Federation of Indian Export Organisations (FIEO) has identified Switzerland, Norway, Iceland, and Liechtenstein as priority markets under TEPA, with automobiles flagged as a high-growth category.

What Comes Next

Industry analysts expect the trajectory to steepen. India produced 5.9 million passenger vehicles in FY25, with exports accounting for roughly 20% of output. As TEPA tariff reductions deepen over the agreement's phased schedule, Indian automakers — particularly those with competitive EV offerings — stand to capture more of Switzerland's import demand.

The November-December 2025 surge may prove to be a structural shift rather than an anomaly. With Tata, Mahindra, and Hyundai India all investing heavily in export-grade electric vehicles, Swiss consumers may soon find Indian-made cars alongside German and Japanese models in their local dealerships.

Data source: Swiss Federal Customs. Trade values in USD. Jobs estimates are indicative, based on sector employment multipliers.