Utility vehicle export in fast lane, overtakes that of small cars

Vijay C Roy

Chandigarh, June 11

Bucking the trend, “Made in India” SUVs (Sports Utility Vehicles) are in demand in many geographies as exports increased by 50.5 per cent in May this year as compared to the corresponding month of the previous year. On the other hand, the exports of small cars, which were the major contributor in passenger vehicle exports, declined by 19.6 per cent.

According to Society of Indian Automobile Manufacturers (SIAM) data, India exported 24,490 UVs in May this year compared to 16,274 units in the same period last year, thus registering a growth of 50.5 per cent. Among the major exporters includes Maruti Suzuki, Honda Cars India, Hyundai Motor India Ltd (HMIL), Kia Motors India, Volkswagen India, Nissan Motor and Toyota Kirloskar Motor.

Maruti Suzuki exported 8,655 units of utility vehicles in May followed by Honda Cars (4,051) and Hyundai Motor India (2,845).

According to insiders, the surge in exports is mainly due to demand, new launches and also easing of semiconductor chips supply.

While UV exports were up, exports of passenger cars witnessed a dip of 19.6 per cent. The total passenger cars exported from the country was 28,802 units in May this year as compared to 35,806 units in May last year.

In comparison to May this year, passenger car exports witnessed an increase of 32 per cent and utility vehicles registered a marginal increase of 7.4 per cent in April 2024 compared to April 2023. The country exported 30,268 units and 19,022 units of cars and utility vehicles respectively. Although small cars and sedans are struggling in India amid SUV popularity, but they had emerged as major contributor in exports last year.

Overall in the 2023-24 fiscal, the country exported 429,677 cars and sedans to different countries and registered a growth of 3.8 per cent. As far exports of utility vehicle are concerned, it declined by 5 per cent. The total utility exported was 234,720 units in last fiscal year.

In domestic market, passenger vehicle wholesales increased 4 per cent year-on-year in May to 347,492 units, as compared to the same month last year, industry body SIAM said on Tuesday. The domestic UV sales were up 17.6 per cent to 182,883 units in May this year. It was 155,474 units in May last year. In comparison to SUVs, small cars and sedans witnessed a decline of 11 per cent as the passenger vehicle makers combined sold 1,06,952 units in May.