Surge in Utility Vehicle Exports and Two-Wheeler Exports Boost Indian Automobile Industry: SIAM Data Reveals

Utility vehicle (UV) exports saw a significant rise of 50.5% in May, while domestic wholesales and production increased by 17.6% and 26.9%, respectively, as per data from the Society of Indian Automobile Manufacturers (SIAM). India exported 24,490 UVs in May, compared to 16,274 units in May of the previous year. Domestic UV sales reached 182,883 units, and production climbed to 213,462 units.

The growth in exports has been driven by companies like Hyundai Motor India Ltd (HMIL), Honda Cars India, and Volkswagen India. Hyundai exported 14,400 passenger vehicles (PVs) in May, marking a 31% increase from May 2023. The previous year’s exports were hindered by a shortage of semiconductor chips, contributing to a low base effect this year. HMIL plays a vital role in Hyundai Motor Corporation’s global export strategy, covering markets in Africa, the Middle East, and neighboring countries like Bangladesh, Nepal, Bhutan, and Sri Lanka.

Honda Cars witnessed an elevenfold increase in exports, rising to 6,521 units from just 587 units in May 2023. Volkswagen India also saw a rise in PV export volumes, reaching 5,839 units, up from 3,222 units in the same period last year. Skoda Auto Volkswagen India (SAVWIPL) celebrated manufacturing over 1.5 million vehicles at its Chakan facility in Pune since 2009. Models like the Skoda Kushaq, Slavia, and Volkswagen Taigun are part of this production. SAVWIPL exports over 30% of its Indian car production to 40 global markets. Piyush Arora, managing director and CEO of SAVWIPL, highlighted plans to strengthen India’s role as a global hub for automotive manufacturing.

Despite the rise in UV exports, passenger car exports declined by 19.6%. Domestic passenger car sales dropped by 11.1%, and production fell by 13% in May. Overall domestic PV wholesales increased by 4.2%, although retail sales saw a slight decline of nearly 1%.

Companies such as Toyota Kirloskar Motors, Maruti Suzuki India, Volkswagen India, and Mahindra and Mahindra reported substantial increases in production numbers in May. Volkswagen India produced 10,666 cars in May compared to 4,362 cars in May 2023. Mahindra and Mahindra’s production rose to 41,595 units, up from 31,022 units, while Maruti Suzuki India produced 189,964 units compared to 176,218 units. HMIL experienced a slight dip in production due to a one-week maintenance shutdown at its Sriperumbudur plant.

Two-Wheeler Exports Grow 20% in May

Two-wheeler exports surged by 20.2% in May, totaling 312,418 units. Scooter exports grew by 25% to 50,844 units, while motorcycle exports increased by 19.2% to 261,310 units. Honda Motorcycle and Scooters India (HMSI) saw its exports jump from 18,249 units last year to 41,458 units in May this year. TVS Motor exports rose from 66,605 units to 88,450 units, and Bajaj Auto exports increased from 112,885 units to 117,142 units. Rakesh Sharma, executive director of Bajaj Auto, noted that key markets like Nigeria, Kenya, and Bangladesh have recovered, contributing to the growth in exports.