India’s automobile exports rise 14% in H1 FY24

Key markets in Latin America and Africa rebound, boosting export growth despite previous fiscal challenges

October 21, 2024

The recovery was driven by increased demand from key markets like Latin America and Africa, which had previously slowed due to currency devaluations

Passenger vehicle exports rose 12%, with Maruti Suzuki leading the segment with a 12% shipment increase to 147,063 units

Two-wheeler exports surged 16% year-on-year, with motorcycles and scooters contributing significantly to the growth

Commercial vehicle exports also saw a 12% increase, totalling 35,731 units during April-September

According to data from the Society of Indian Automobile Manufacturers (Siam), automobile exports from India increased by 14% in the first half of the current fiscal year, supported by a recovery in key international markets. Exports during the April-September period reached 2,528,248 units, compared to 2,211,457 units during the same period last year.

The rebound in export performance was attributed to the recovery of key markets, including Latin America and Africa, which had previously slowed due to economic challenges, including currency devaluation. “Markets like Latin America and Africa have bounced back after facing slowdowns for various reasons,” noted Siam President Shailesh Chandra.

In the previous fiscal year, automobile exports from India declined by 5.5%, with total shipments falling to 4,500,492 units, down from 4,761,299 units in FY23. This drop was largely due to monetary crises in several overseas markets, which prioritised essential imports over vehicle purchases.

In the passenger vehicle segment, exports rose 12% to 376,679 units during April-September FY24. Maruti Suzuki, India’s largest carmaker, led this growth with 147,063 shipped, up 12% from the year-ago period. Hyundai Motor India, however, saw a slight decline in exports, shipping 84,900 units, down 1% from the previous year.

Two-wheeler exports grew by 16%, totalling 1,959,145 units in the first half of FY24, with scooter shipments rising 19% to 314,533 units and motorcycle exports increasing by 16% to 1,641,804 units. Commercial vehicle exports also recorded a 12% year-on-year growth, reaching 35,731 units.

However, the three-wheeler segment experienced a 1% decline, with exports falling to 153,199 units during April-September, compared to 155,154 units in the corresponding period last year. Despite this, overall export performance in the automobile sector reflected a significant improvement over the previous fiscal year.

Source: Economic Times

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