India's auto exports rise over 15% y-o-y in Q1FY'25 amid strong growth in production

Exports of automobiles from India saw a notable increase of 15.5% y-o-y during the June quarter (April-June 2024), with all sectors except three-wheelers showing growth in shipments, according to latest data from the Society of Indian Automobile Manufacturers (SIAM).

Total shipments for the first quarter of the current fiscal year reached 1,192,577 units, up from 1,032,449 units in the same period last year.

Passenger vehicle exports reached 180,483 units in Q1, marking a significant 19% rise from 152,156 units in the previous year.

The country's largest automobile manufacturer, Maruti Suzuki India, topped with deliveries of 69,962 units during the specified period. It exported 62,857 units in Q1 FY'25.

Hyundai Motors India shipped 42,600 units between April and June. This marks an increase from 35,100 units shipped during the corresponding period of last year.

Two-wheeler exports also showed robust growth, reaching 923,148 units, up 17% from 791,316 units in the year-ago period. Commercial vehicle shipments rose by 8% y-o-y to 15,741 units, compared to 14,625 units last year. However, three-wheeler shipments experienced a slight decline of 3%, totaling 71,281 units compared to 73,360 units in the year-ago period.

Previously, automobile exports from India had faced challenges resulting in a 5.5% decline in FY'24 due to economic uncertainties in key overseas markets. Overall exports for the last fiscal year were 45,00,492 units, down from 47,61,299 units in FY'23.

Production and sales scenario in Q1 FY'25

In the Q1, the Indian automotive sector demonstrated robust performance in both production and sales across various vehicle categories, significantly contributing to the country's economic activity. Production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles totaled an impressive 75,48,668 units, increasing by 16% y-o-y in Q1 FY'25 against 65,03,626 units in Q1 FY'24 highlighting the industry's capability to meet domestic demand and potentially explore export markets.

Domestic sales show steady demand:

Passenger vehicles comprised 10,26,006 units and commercial vehicles 2,24,209 units of domestic sales, crucial for logistics and industrial transport. Three-wheelers sales stood at 1,65,081 units, essential for intra-city transport, while the vibrant two-wheeler segment marked impressive sales of 49,85,631 units, illustrating widespread adoption across urban and rural markets.

Passenger vehicles achieved a record-high sales exceeding 1 million units, growing by 3% y-o-y. Three-wheelers also set a Q1 record with sales totaling 1.65 lakh units, marking a growth of 14.2%. Two-wheelers showed robust growth of 20.4%, selling 4.99 million units, while commercial vehicles grew by 3.5%, with sales reaching 2.24 lakh units.

Outlook

Growth was witnessed across segments in Q1 FY'25 compared to the previous year, with notable double-digit growth in two- and three-wheelers driven by a recovery in entry-level models like scooters. Looking further ahead, optimism prevails with positive expectations for the monsoon and upcoming festive season, anticipated to further boost the automotive sector's performance in the remainder of the year.

Overall, the strong start in FY'25 underscores positive growth trends across vehicle categories, positioning the automotive industry favourably for continued success and resilience in the evolving market landscape.