India's Automobile Exports Dip 5.5% in FY24

According to the latest data released by the Society of Indian Automobile Manufacturers (SIAM), automobile exports from India witnessed a decline of 5.5% in the fiscal year 2023-24 (FY24). This drop was attributed to the monetary crisis prevailing in various overseas markets. Overall exports stood at 45,00,492 units during the last fiscal, a decrease from 47,61,299 units recorded in FY23. SIAM President Vinod Aggarwal commented on the decline in overseas shipments, highlighting the volatility in several international markets. Some of the countries, where we are very strong with commercial vehicle and two-wheeler exports, have been facing foreign exchange-related issues, noted Aggarwal. The fiscal year saw a significant decrease in commercial vehicle, two-wheeler, and three-wheeler shipments, although there was marginal growth in passenger vehicle exports. However, there was a noticeable recovery in the January-March quarter of the current year, particularly in the two-wheeler segment, indicating better prospects for the remainder of the fiscal year. Aggarwal expressed optimism about the future, stating, We are very hopeful that going forward, the situation will improve. In the passenger vehicle segment, exports increased by 1.4% to 6,72,105 units in FY24, with Maruti Suzuki leading the segment by shipping 2,80,712 units. Hyundai Motor India exported 1,63,155 units, while Kia Motors, Volkswagen India, Nissan Motor India, and Honda Cars also contributed significantly to the passenger vehicle exports in the fiscal year. However, two-wheeler exports experienced a dip of 5.3%, with commercial vehicle shipments dropping by 16% and three-wheeler exports declining by 18% in FY24 compared to the previous fiscal year. SIAM remains cautiously optimistic about the outlook for the automobile export industry in the coming months, hoping for a turnaround amidst the challenges posed by the global economic scenario.