Three-wheeler exports rebound in 2024 despite global economic challenges

India’s three-wheeler exports have shown a resurgence in 2024, due to a host of factors including recovery in key export destinations like Sri Lanka, Kenya and Nepal, and a falling rupee.

 

Data from the Society of Indian Automobile Manufacturers (SIAM) reveals a modest growth of 1.73 per cent in exports for January-November period in the calendar year 2024 reaching 273,548 units compared to 268,888 units in 2023.

  This positive trend comes after consecutive years of decline, with exports falling by 26 per cent in FY23 and 17 per cent in FY24.

 

The growth in exports is particularly noteworthy considering the prevailing macroeconomic headwinds, rising inflation and slowing global growth. Key export markets like Sri Lanka, Bangladesh, Nigeria, and Egypt have been facing significant economic challenges, impacting demand for Indian three-wheelers.

 

Industry experts attribute this growth to a combination of factors.

 

“Sri Lanka, Kenya, and Nepal, which are our key export destinations, are witnessing some recovery after a period of turmoil,” said Anurag Singh, Advisor at Primus. “Furthermore, the depreciation of the Indian Rupee against the US Dollar has made our three-wheelers more competitive in the international market.” 

Speaking on the outlook of FY26, Singh said, “The key export countries still face significant uncertainties, making it difficult to predict future trends. However, based on the current trajectory, it is likely that the growth momentum will continue in the coming year.”

 

The three-wheeler industry has faced significant challenges in recent years, with exports declining by 11.60 per cent in FY20 and 21.70 per cent in FY21. However, a strong recovery in FY22, with a growth of 27.20 per cent, provided a much-needed boost to the sector.

 

The recent growth in exports, despite the global economic slowdown, indicates a resurgence in demand and provides a positive outlook for the Indian three-wheeler industry.