New Delhi, June 30 -- Automakers and component makers are increasingly expanding manufacturing and assembly operations overseas as exports become a key growth pillar at a time of rising tariffs and geopolitical disruptions. At least four companies, including Bajaj Auto, Royal Enfield, Sona Comstar and Tata Motors, have underlined benefits of overseas plant expansion or committed additional expenses for improving overseas operations over the past month in key export markets across South America and Asia. The bullish view comes as exports of vehicles hit a record in FY26 with cumulative vehicle exports growing by 24% to 6.6 million units, as per Society for Indian Automobile Manufacturers (Siam) data. The need for geographical diversification has become more pressing as two of India's largest export destinations-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. South Africa is also reviewing its automotive policy, with passenger vehicle tariffs potentially rising to 50%. Royal Enfield is preparing to set up its own assembly plant in Brazil to deepen its presence in one of its fastest-growing overseas markets. Bajaj Auto, meanwhile, said its first manufacturing plant outside India, located in Manaus, Brazil, helped deliver its best-ever performance in the country. "In CY2025, Bajaj Do Brasil sold nearly 32,000 units-versus over 13,000 units sold in CY2024. A key enabler of this performance was the successful commencement of operations at the dedicated manufacturing facility in Manaus, Bajaj Auto's first plant outside India," Bajaj said in its FY26 latest annual report. "The annual capacity has increased to 50,000 units per year, having started local operations for frame welding and painting," it added. Speaking after its results on 22 May, Royal Enfield chief executive B Govindarajan said Brazil would be the next phase of its international expansion. "Now, we are also working on establishing our own CKD facility, which will help us in the years to come for the higher growth rate," he said..The company is also evaluating a plant in Mexico to help offset tariff risks in both Mexico and the US. South Africa, another major export destination for Indian automakers, is also reviewing localization policies that could raise tariff barriers. Tata Motors has also identified international expansion as a key pillar of its long-term growth strategy. On Thursday, the country's largest truck and bus maker said it plans to establish assembly plants in markets where sales volumes reach a threshold that justifies greater localisation. The commentary comes months after Indian two wheeler giants Hero, TVS and Bajaj noted that existence of assembly plants in Mexico which is one of the largest export markets will help in offsetting higher tariff impact in the country, thus suggesting that the playbook may become wider as exports grow for Indian firms across categories. "We operate several assembly plants across the globe in countries like Bangladesh and South Africa. We have been having semi knock-down units assembly facilities especially in those countries where duty differential is very high. When a particular market becomes significant in terms of volume then we will increase our level of localization. We will keep rolling out these plants as these markets hit the volume threshold," Tata Motors managing director and chief executive Girish Wagh said. Auto component maker Sona Comstar is following a similar strategy....