In reverse gear: Automobile exports skid 5.5% in FY24

In 2023-24 automobile exports from India followed a trajectory completely opposite to that of mobile phones. While in the last financial year, the production of mobile phone handsets zoomed and as much as 30% of domestic production was meant for exports to markets as varied as the UK, the Netherlands, West Asia, North Africa, Italy, Austria and South America, automobile exports slipped 5.5% in the same time period, according to figures offered by Society of Indian Automobile Manufacturers (SIAM). The reason offered: financial crisis in different export markets.

The data shared by SIAM revealed cumulative exports touched 45,00,492 (45.00 lakh) in 2023-24. The figure achieved in 2022-23 was 47,61,299 (46.61 lakh).

“Some of the countries, where we are very strong with commercial vehicle and two-wheeler exports, have been facing foreign exchange-related issues,” said Vinod Aggarwal, president of SIAM.

Some of the sectors that were affected were two-wheeler, three-wheeler and commercial vehicle. The exports of passenger vehicles, which registered a marginal growth, helped a bigger dip in the overall exports curve.

The gloom gave way to a somewhat optimistic picture in the January-March period in 2024, when the two-wheeler exports staged a small recovery, leading the industry to hope for better tidings this year.

Passenger vehicles exports rose marginally by 1.4% climbing up to 6,72,105 units. The comparative figure in 2022-23 was 6,62,703 units.

The highest passenger vehicle brand to grow was the country’s biggest automobile manufacturer Maruti Suzuki. In 2023-23 it exported 2,80,712 vehicles which was a good 9% jump from the 2,55,439 units the Japanese company exported the year before.

Hyundai Motor India exported 1,63,155 cars in 2023-24. A year ago, it had shipped 1,53,019 vehicles out of the country, thereby registering a growth of 6.62%.

South Korean company Kia Motors exported 52,105 units, followed by Volkswagen India that exported 44,180 units in 2023-24.

Next on the pecking order came Nissan Motor India and Honda Cars that respectively exported 42,989 and 37,589 vehicles.

A decline of 5.3% was recorded in the two-wheeler export segment. A total of 34,58,416 scooters and motorbikes were sold outside the country in 2023-24 while the number was 36,52,122 units in 2022-23.

Three-wheeler exports registered a sharp 18% dip last year. Last year only 2,99,977 vehicles were exported against 3,65,549 units in 2022-23.

Commercial vehicle exports went down by as much as 16% — 65,816 units in 2023-24 compared to 78,645 vehicles in 2023-24.