India’s automobile exports faced a substantial setback in 2023, registering a significant 21% decline compared to the previous year, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM). The downturn is attributed to challenges posed by monetary and geopolitical crises in several overseas markets.
Overall exports totaled 42,85,809 units in 2023, down from 52,04,966 units in 2022. While passenger vehicle shipments managed to buck the trend, witnessing a 5% increase to 6,77,956 units last year from 6,44,842 units in 2022, other segments experienced a downturn.
Two-wheeler exports bore the brunt of the challenges, dropping 20% to 32,43,673 units in 2023 from 40,53,254 units in the previous year. Commercial vehicle shipments followed suit, declining to 68,473 units last year from 88,305 units. Similarly, three-wheeler exports witnessed a substantial 30% decline, falling to 2,91,919 units in 2023 from 4,17,178 units in 2022.
SIAM’s Director General, Rajesh Menon, shared insights into the export dynamics, stating that the growth in passenger vehicle exports during 2023 was driven by new vehicle launches and pent-up demand in markets like South Africa and the Gulf region. He emphasized that the smoother supply chain, compared to the previous year, played a role in the increased passenger vehicle exports.
Menon highlighted the persisting challenges in the two and three-wheeler segments, citing foreign exchange availability issues that have dampened demand in certain regions.
Providing a snapshot of the current fiscal year up to December 2023, Maruti Suzuki India led the passenger vehicle export segment, shipping 2,02,786 units, marking a 6% increase from the previous year. Hyundai Motor India, Kia India, Volkswagen, Nissan, and Honda Cars also contributed to the export figures during this period.
While the industry faces headwinds, stakeholders are hopeful for a rebound in exports as geopolitical and monetary conditions stabilize globally, allowing for a more favorable environment for the Indian automobile sector. The sector will keenly watch policy measures and market trends to navigate the challenges and identify growth opportunities in the coming months.