India eyes 50 per cent passenger vehicle exports by 2030
The Central Government intends to transform the country into a global automobile manufacturing hub and has urged the automobile industry to set a target of increasing the share of vehicles being exported to 50% of all passenger vehicles produced in the country by 2030.
Current status
During the period April-October 2024, auto makers exported 4,38,209 vehicles compared to 3,90,674 vehicles in the corresponding period of the previous fiscal, thus witnessing a growth of 12.2 per cent. The share of the exports in the total vehicle production was 15.4 per cent, an improvement over the last fiscal.
In 2023-24, exports accounted for just 13.70 per cent of total PV production in India, down from 14.45 per cent in 2022-23 and a significant drop from the pre-pandemic level of 19.33 per cent in 2019-20. In absolute terms India exported 6,72, 205 units in 2023-24 in comparison to 6,62,891 units in 2022-23. While in 2019-20, it exported 6,62,118 units across different countries. The exports have increased in the last three fiscals after witnessing a decline in 2020-21, but still the pace is slow considering the aggressive target.
Passenger vehicle exports
Passenger vehicle makers are exporting cars and utility vehicles to over 100 countries, including Japan. Passenger vehicles comprises passenger cars and UVs. The UVs are mainly sports utility vehicles (SUVs) and multi-utility vehicles (MUVs). The craze and love for utility vehicles (UVs) is not only intensifying at a rapid pace in the domestic market but as well as for “made in India” SUVs in the exports market. SUV exports registered an increase of 45.5 per cent during April-October 2024, according to the Society of Indian Automobile Manufacturers (SIAM) data. India exported 1,96,636 units of SUVs during the period. While in export market, passenger cars witnessed a decline of 5.6 per cent. The auto makers exported 2,36,625 units.
Major exporters
Major exporters, including Maruti Suzuki, Hyundai Motor India, Honda Cars, Kia India, Volkswagen India, Toyota Kirloskar Motor, Nissan Motor India Pvt Ltd, Volkswagen India Pvt Ltd. Maruti Suzuki, shipped over 2.8 lakh units to over 100 countries in FY 2023-24. Maruti Suzuki has 42 per cent share in the exports of passenger vehicles from the country. During April-October, the company exported a record 1,75,365 units, the highest ever by the company.
The impediments
According to insiders, the two major Indian carmakers—Tata Motors and Mahindra & Mahindra— doesn’t have much exposure to exports compared to Japanese and Korean car makers, which is also one of the reasons the share of exports not rising significantly. Both the Indian players have significant market share in the domestic market. Secondly, the exit of American automakers, such as Ford and Chevrolet, has also impacted export volumes.
