Indian Automobile Exports Decline 21% in 2023; Passenger Vehicles Buck the Trend

New Delhi: Despite a 21% fall in overall shipments to 42.86 lakh units in 2023, the Indian auto industry witnessed a silver lining: a 5% rise in passenger vehicle (PV) exports. This surge, driven by pent-up demand and strategic vehicle launches in promising markets like South Africa and the Gulf region, offers a ray of hope amidst global economic and geopolitical headwinds.

The Society of Indian Automobile Manufacturers (SIAM) attributed the PV uptick to a smoother supply chain compared to the semiconductor disruptions of 2022. However, other segments like two-wheelers (-20%), commercial vehicles (-23%), and three-wheelers (-30%) grappled with currency availability issues in key markets, dampening export volumes.

“PV exports were driven by new vehicle launches and pent-up demand in markets like South Africa and the Gulf region,” explained Rajesh Menon, Director-General of SIAM. “The smoother supply chain, compared to 2022’s semiconductor disruptions, also played a role. However, currency challenges in markets for two and three-wheelers limited their export growth.”

While Maruti Suzuki dominated the PV export arena with a 6% year-on-year increase to 2.03 lakh units, Hyundai, Kia, Volkswagen, Nissan, and Honda also carved out significant export niches.