Indian auto exports slip, passenger vehicles grow 5%

Automobile exports from India faced a decline of 17.5% in the first half of the fiscal year 2023-24, with a total of 22.11 lakh units shipped as opposed to 26.80 lakh units in the same period the previous year. This slump spanned across various segments like two-wheelers, commercial vehicles, and three-wheelers. In a silver lining, the passenger vehicle (PV) segment witnessed a growth of 5%.

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India's prime auto export destinations include Latin America, Southeast Asia, Africa, and the Middle East. Some PV manufacturers also reach out to European and other developed markets.

Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), attributed the dip in exports to ongoing geopolitical concerns and foreign exchange challenges in primary export markets. However, the resilience in the PV segment can be credited to its diverse export market range. Aggarwal remains optimistic, noting efforts by the government to boost rupee trade, and expressing hope for more decisive actions in this direction.

While there's evident consumer demand in the export markets, countries are prioritising imports of essential items due to limited foreign exchange reserves. This dynamic has constrained vehicle sales. Some Original Equipment Manufacturers (OEMs) had also reported shipment delays in the last quarter, though according to Aggarwal, these have now been addressed.