The Indian government is setting its sights on transforming the country into a global automobile manufacturing hub, with an ambitious goal to increase the export share of passenger vehicles to 50 per cent of total production by 2030.
This move is part of a broader strategy to enhance India’s position in the global automotive sector, capitalising on the growing demand for “Made in India” vehicles.
During the period April-October 2024, Indian automakers exported 438,209 vehicles, marking a 12.2 per cent increase compared to 390,674 vehicles in the same period the previous year.
This boosted the share of exports to 15.4 per cent of total vehicle production, an improvement over the previous fiscal.
However, exports in 2023-24 accounted for just 13.7 per cent of total production, down from 14.45 per cent in 2022-23 and a sharp decline from the pre-pandemic level of 19.33 per cent in 2019-20.
Despite this drop, the industry has seen a steady rise in exports since the pandemic-induced slump of 2020-21, with the total number of units exported in 2023-24 reaching 672,205.
Yet, the pace of growth is slow, leaving industry stakeholders with a challenge to meet the government’s aggressive target.
Passenger vehicles, including cars and utility vehicles (UVs), are being exported to over 100 countries. The popularity of Indian-manufactured SUVs in particular has been remarkable, with SUV exports surging 45.5 per cent during April-October 2024, totalling 196,636 units.
In contrast, exports of passenger cars declined by 5.6 per cent, with 236,625 units shipped abroad.
Major exporters such as Maruti Suzuki, Hyundai, and Kia dominate the market. Maruti Suzuki, in particular, stands out with over 2.8 lakh units exported in FY 2023-24, commanding 42 per cent of the export share.
However, companies like Tata Motors and Mahindra & Mahindra lag behind in exports, hindered by limited international exposure compared to their Japanese and Korean counterparts.
Additionally, the exit of American automakers like Ford and Chevrolet has also affected export volumes.
The government’s target will require overcoming these challenges to accelerate India’s automotive export growth.
