India’s automobile exports grew by 14% in H1 2023-24

India’s automobile exports surged by 14% in the first half of the fiscal year, reaching 25,28,248 units, up from 22,11,457 units the previous year, according to the Society of Indian Automobile Manufacturers (SIAM). This growth is driven by strong demand for passenger vehicles and two-wheelers, particularly from markets in Australia, Latin America, and Southeast Asia. As the industry rebounds from past challenges, this positive trend highlights its significant contribution to India’s economic landscape.

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India’s automobile sector is experiencing steady growth in exports, with a reported CAGR of 21.7% from 2021 to 2024. Exports have not only surpassed pre-pandemic levels but are also on track for further expansion. This growth comes amidst global uncertainty and is driven by increasing demand for popular models like the Hyundai Creta, Maruti Suzuki Grand Vitara, Kia Seltos, and Mahindra XUV700, particularly from customers in Australia, Latin America, and Southeast Asia. Maruti Suzuki and Hyundai dominate vehicle exports, accounting for two-thirds of all cars shipped from the country. Meanwhile, homegrown automakers Tata Motors and Mahindra & Mahindra hold modest shares of 0.4% and 2%, respectively, according to industry data. Kia, Volkswagen, and Nissan rank among the top five car manufacturers exporting from India, with market shares of 9%, 7%, and 6%, respectively.

According to the Society of Indian Automobile Manufacturers (SIAM), India’s automobile exports grew by 14% in the first half of this fiscal year, driven by strong demand for passenger vehicles and two-wheelers. Total exports from April to September reached 25,28,248 units(valued at around US$ 4.3 billion), up from 22,11,457 units (valued at US$ billion) during the same period last year. The ministry of commerce data shows that the value of automobiles exported has been US$ 4.2 billion and US$ 4.3 billion (estimated) in the same periods.

This growth in quantity is largely attributed to the recovery of key international markets, particularly in Latin America and Africa, which had previously slowed due to economic challenges. As these regions rebound, India’s export volumes have seen a significant boost.

Passenger vehicle exports recorded a 12% year-on-year increase, with shipments reaching 3,76,679 units. The leading exporter in this segment saw a 12% rise, shipping 1,47,063 units compared to 1,31,546 units in the same period last year. Meanwhile, another major manufacturer experienced a slight 1% decline, exporting 84,900 units, down from 86,105 units.

Two-wheeler exports witnessed even stronger growth, rising 16% to 19,59,145 units from 16,85,907 units a year ago. Within this category, scooter exports grew by 19%, reaching 3,14,533 units, while motorcycle exports increased by 16% to 16,41,804 units.

Commercial vehicle exports also rose by 12%, with 35,731 units shipped during April-September. In contrast, three-wheeler exports saw a marginal decline, dipping 1% to 1,53,199 units from 1,55,154 units last year.

In the previous fiscal year, India’s overall vehicle exports had dropped by 5.5%, due to factors like currency devaluations in major international markets and a focus on essential goods. Total exports for FY24 stood at 45,00,492 units, down from 47,61,299 units in FY23. However, the recovery in key markets has led to a reversal in this trend in the current fiscal year.

Overall, the Indian automobile industry stands as a vital pillar of the nation’s economy, significantly contributing to both GDP and employment while also supporting a wide range of allied sectors. With a remarkable share of 49% in India’s manufacturing GDP and a direct employment impact exceeding 8 million jobs, the industry demonstrates its essential role in driving economic growth. As it caters to the needs of lower and middle-income groups, the sector distinguishes itself from other global automobile markets. The journey from the introduction of the first car in 1897 to becoming the third-largest automobile market by sales in 2022 showcases its evolution and resilience. Furthermore, the industry’s strong government support and adaptability to disruptive trends like electrification and connectivity position it well for future growth. As India continues to be a leading producer of various vehicle types, the outlook for the Indian automobile industry remains promising, emphasizing its integral role in shaping the global automotive landscape.