Automobile exports from India witnessed decline amid global economic turbulence

In a dynamic global economic landscape, India's automobile exports faced headwinds in the fiscal year 2023-24, marked by a 5.5 per cent decline as reported by the Society of Indian Automobile Manufacturers (SIAM). This downturn, attributed to monetary crises in key overseas markets, contrasts with the export growth witnessed in the previous fiscal year, highlighting the sector's resilience and adaptability in challenging times.

Despite challenges, the passenger vehicle segment demonstrated resilience, registering a marginal 1.4 per cent growth in exports. Leading this segment were industry giants like Maruti Suzuki, Hyundai Motor India, and others, collectively contributing to India's export prowess in the sector.

However, the two-wheeler segment witnessed a moderate decline of 5.3 per cent in exports, reflecting the broader global economic uncertainties impacting consumer demand and market dynamics.

The commercial vehicle segment, meanwhile faced a more substantial setback, with a 16 per cent decline in shipments. This decline can be attributed to challenges in key export markets and evolving trade dynamics.

Similarly, three-wheeler exports declined by 18 per cent, underscoring the broader challenges faced by the automotive industry in navigating global economic fluctuations.

Challenges and Outlook

Vinod Aggarwal, President of SIAM, highlighted the volatility in overseas markets, particularly in countries where India has a strong presence in commercial vehicle and two-wheeler exports. Foreign exchange-related issues in these markets have adversely affected export volumes, necessitating a strategic approach to address these challenges.

Despite the challenges, there are positive signs indicating a path to recovery. The January-March quarter of FY25 showed a promising recovery, especially in the two-wheeler segment. This recovery indicates a potential upturn for the rest of the year, offering hope for the sector's revival and growth.

Industry stakeholders remain optimistic about the future, buoyed by the recovery seen in the first quarter of FY25. The industry anticipates a positive trajectory in exports, especially in segments like two-wheelers, signalling potential growth in the coming months.

With strategic interventions and a focus on market diversification, the sector aims to overcome these challenges and emerge stronger, contributing to India's position as a key player in the global automotive market.