Auto exports jump 40% in Jan; domestic dispatches in PVs, 2Ws remain flat

On the export front, car exports saw nearly a 13 per cent drop year-on-year (Y-o-Y), while utility vehicle (UV) exports went up by around 61.5 per cent in January

The Indian auto industry has kick-started the year with strong showing in exports, as major segments, including passenger vehicles (PVs), two-wheelers (2Ws), and three-wheelers (3W), recorded double-digit growth in January. Overall automotive exports during the month were up 40.2 per cent compared to January last year.

 

According to data from the Society of Indian Automobile Manufacturers (Siam), PV exports in the month grew by nearly 17 per cent to 57,585 units, while 2W exports rose by 46.2 per cent to 380,528 units, and 3W exports increased by close to 20 per cent to 23,859 units.

 

Domestic dispatches in January were relatively muted — PV dispatches were flat at 399,386 units (up 1.6 per cent), 2Ws up 2.1 per cent to 1,526,218 units, and 3Ws rose 7.7 per cent to 58,167.

 

On the export front, car exports saw nearly 13 per cent drop year-on-year (Y-o-Y), while utility vehicle (UV) exports went up by 61.5 per cent or so in January. In the 2W category, however, both scooters and motorcycles saw a growth in exports — scooters going up by 23.5 per cent, while motorcycles growing by 49.7 per cent during the month. Among major OEMs (original equipment manufacturers), Maruti Suzuki India (MSIL) and Hyundai Motor India (HMIL) saw a rise in export volumes in January, while Bajaj Auto, Hero MotoCorp, and Honda Motorcycle and Scooter India also witnessed growth in exports during the month.

 

For the April-January period as well, overall automotive exports from India were up by 20 per cent or so — PVs grew by 14.4 per cent, while 2Ws rose by 23 per cent or so, and 3Ws remained flat. 

 

Major PV exporters from India like Maruti Suzuki India and Hyundai Motor India saw a mixed bag during the December quarter of the current financial year (Q3FY25). As for Maruti, exports had jumped 38.2 per cent Y-o-Y to 99,220 units during the quarter. In fact, the PV major plans to export the new e-Vitara to a few key markets even before being put on sale in India. The e-Vitara production in India would be for the world.

 

Meanwhile, Hyundai Motor India saw a dip in export volumes during the quarter to 40,386 units (compared to 43,650 units in Q3FY24) mainly impacted by Red Sea and geopolitical challenges, affecting its exports to the Middle East and Latin America regions.

 

Unsoo Kim, managing director (MD), HMIL, said in the quarterly call that to mitigate the risk, they have increased their volumes to other regions, like Africa, supported by additional discounts. Going forward, HMIL expects stability in its export volumes.

 

Two-wheeler major Bajaj Auto too had seen a broad-based recovery in exports that led to the return of over 500,000 units after nine quarters in Q3FY25. Speaking to reporters, Rakesh Sharma, executive director, Bajaj Auto, said that export revenues had grown by 16 per cent in the third quarter to ₹4,500 crore. Going forward, they expect exports growth to remain strong (over 20 per cent) in the near term as they are positive on growth from the Latin American markets.

 

Rajesh Menon, director general (DG), Siam, said that the recent Union Budget announcements — prioritising long-term economic growth, and making personal income tax changes — and reduction in interest rates by the Reserve Bank of India (RBI) would help in boosting consumer confidence and drive demand in the auto industry.