India’s Auto Exports Fall by 21% in 2022
The Society of Indian Automobile Manufacturers (SIAM) has recently released these data, throwing light on the contrasting growth and decline patterns seen within different segments of the industry.
Khodrocar - India’s automobile industry experienced a sharp 21% decline in exports in 2022, with overall shipments falling to 42,85,809 units, a significant drop from the previous year’s figure of 52,04,966 units. The Society of Indian Automobile Manufacturers (SIAM) has recently released these data, throwing light on the contrasting growth and decline patterns seen within different segments of the industry.
A Ray of Hope Amidst Downturn
Amidst this overall downturn, the passenger vehicle sector managed to buck the trend, registering a 5% increase in exports to 6,77,956 units, compared to 2022’s 6,44,842 units. The growth was primarily driven by new vehicle launches and a resurgence of demand in markets such as South Africa and the Gulf region which had pent-up demand due to previous supply chain disruptions caused by semiconductor shortages.
The Plunge of Two-wheelers and Three-wheelers
On the flip side, the commercial vehicles, two-wheelers, and three-wheelers segments were not as fortunate, each witnessing a decline in their export numbers. Two-wheeler exports suffered a 20% fall to 32,43,673 units, while commercial vehicle shipments fell to 68,473 units. Furthermore, three-wheeler exports witnessed a steep 30% decrease to 2,91,919 units. These downturns were primarily due to ongoing foreign exchange availability issues in the markets where these vehicles are predominantly sold, suppressing demand substantially.
Maruti Suzuki Leads the Pack
In terms of individual companies, Maruti Suzuki India emerged as the leader in the passenger vehicle export segment for the period of April-December of the current fiscal year. Other significant contributors included Hyundai Motor India, Kia India, Volkswagen, Nissan, and Honda Cars. SIAM’s Director General, Rajesh Menon, highlighted the challenges in regions where two and three-wheelers are sold, affirming that the issue of foreign exchange availability continues to pose a significant obstacle, suppressing demand.
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