New Delhi: The Indian automobile industry has some positive developments on the export front. During the April to September 2024 period, demand for vehicles manufactured in India increased by 14%, reaching 2,528,248 units, compared to 2,211,457 units in the same timeframe the previous year. This comes after a challenging FY2024, where overall exports had dropped by 5.5% year-on-year, totalling 4,500,492 units. Three out of four vehicle categories saw declines during that time, including two-wheelers, three-wheelers, and commercial vehicles, primarily due to economic difficulties in key export markets.
India’s vehicle exports are on the rise, showing strong growth in the first half of FY2025. Vehicle exports increased by 14% year-on-year, with 25,28,248 units exported between April and September 2024. This marks a significant recovery after a 5.5% decline in FY2024, where exports were hit by economic challenges in key markets. The current growth has been fuelled by rising demand for SUVs, two-wheelers, and commercial vehicles. Here’s a closer look at the performance of each segment.
| Vehicle Export Growth by Segment (H1 FY2025) | |||
| Vehicle Segment | Exports in H1 FY2025 | YoY Growth (%) | Exports in H1 FY2024 |
| Passenger Vehicles | 376,679 units | +12% | 336,356 units |
| Two-Wheelers | 1,959,145 units | +16% | 1,685,907 units |
| Three-Wheelers | 153,199 units | -1% | 154,742 units |
| Commercial Vehicles | 35,731 units | +12% | 31,864 units |
| Total | 2,528,248 units | +14% | 2,211,457 units |
Passenger Vehicles
In the first half of FY2025, the passenger vehicle (PV) segment saw a 12% rise in exports, with a total of 376,679 units shipped. This growth was mainly driven by the increased demand for utility vehicles (UVs). UVs accounted for 44% of total passenger vehicle exports, with 167,757 units shipped – a 43% increase from the same period last year. SUVs have become increasingly popular both in India and abroad due to their versatility and appeal.
| Top Passenger Vehicle Exporters (H1 FY2025) | ||
| Manufacturer | Exports (Units) | YoY Growth (%) |
| Maruti Suzuki | 147,063 | +9% |
| Hyundai Motor India | 84,901 | +10% |
| Volkswagen India | 35,079 | +74% |
Maruti Suzuki remains the top exporter in this segment and is set to maintain its leadership for the fourth year in a row. With 147,063 units exported in the first half of FY2025, Maruti Suzuki is far ahead of its competitors. Hyundai Motor India follows in second place, while Volkswagen India has moved into the third spot with 35,079 units, thanks to a remarkable 74% year-on-year growth.
Two-Wheeler Exports
The two-wheeler segment, which includes motorcycles, scooters, and mopeds, has also seen strong growth in exports during H1 FY2025. Total two-wheeler exports reached 1.95 million units, a 16% year-on-year increase. Motorcycles made up 84% of these exports, with 16,41,804 units shipped. Scooters, on the other hand, saw a 19% increase in exports, totalling 314,533 units.
| Two-Wheeler Export Performance (H1 FY2025) | ||
| Two-Wheeler Type | Exports (Units) | YoY Growth (%) |
| Motorcycles | 1,641,804 | +15.6% |
| Scooters | 314,533 | +19% |
| Total | 1,959,145 | +16% |
Bajaj Auto remains the largest exporter of two-wheelers, with 764,827 units exported in H1 FY2025. However, Bajaj’s market share dropped slightly from 43% to 39% due to slowing demand in some markets. Despite this, Bajaj maintains its dominant position. TVS Motor Co. holds second place with a stable 26% market share. Meanwhile, Honda Motorcycle & Scooter India has seen the most growth, increasing its market share from 10% to 14%, driven by rising demand for its products, especially in markets like Southeast Asia and Africa.
| Top Two-Wheeler Exporters (H1 FY2025) | |||
| Manufacturer | Exports (Units) | Market Share (%) | Change in Market Share (YoY) |
| Bajaj Auto | 764,827 | 39% | -4% (from 43%) |
| TVS Motor Co. | 509,840 | 26% | Stable |
| Honda Motorcycle & Scooter India | 274,280 | 14% | +4% (from 10%) |
Three-Wheeler Exports
The three-wheeler segment faced a slight decline in exports during the first half of FY2025, with shipments down by 1% to 153,199 units. This follows a larger 18% drop in FY2024, as economic challenges impacted key markets. Despite the overall decline, Bajaj Auto remains the leader in three-wheeler exports, shipping 87,907 units in H1 FY2025. This gives Bajaj a 57% market share, up from 50% a year ago.
| Top Three-Wheeler Exporters (H1 FY2025) | |||
| Manufacturer | Exports (Units) | Market Share (%) | YoY Growth (%) |
| Bajaj Auto | 87,907 | 57% | +13% |
| TVS Motor Co. | 56,245 | 37% | -18% |
| Piaggio Vehicles | 6,670 | 4.35% | +16% |
TVS Motor Co., which shipped 12,158 fewer units compared to the same period last year, saw an 18% drop in its three-wheeler exports. As a result, TVS’s market share fell from 44% to 37%. Meanwhile, Piaggio Vehicles saw growth, increasing its market share from 3.69% to 4.35% after a 16% rise in exports.
Commercial Vehicles
The commercial vehicle (CV) segment has experienced a strong recovery in exports, growing by 12% year-on-year in the first half of FY2025. A total of 35,731 units were exported during this period, marking a turnaround after a 16% drop in FY2024.
| Commercial Vehicle Exports (H1 FY2025) | |||
| Manufacturer | Exports (Units) | Market Share (%) | YoY Growth (%) |
| Isuzu Motors India | 9,745 | 27% | +25% |
| Mahindra & Mahindra | 8,496 | 23% | +12% |
| Tata Motors | 7,833 | 22% | -7% |
| Ashok Leyland | 5,644 | 16% | +10% |
| VE Commercial Vehicles | 2,322 | 6.5% | +32% |
Isuzu Motors India has emerged as the top exporter in this segment, shipping 9,745 units in H1 FY2025. Isuzu’s exports grew by 25%, and it now holds a 27% market share. Mahindra & Mahindra also performed well, exporting 8,496 units, a 12% year-on-year increase. However, Tata Motors saw a 7% drop in exports, shipping 7,833 units, which led to a decline in its market share from 26% to 22%. Ashok Leyland shipped 5,644 units, reflecting a 10% rise in exports, while VE Commercial Vehicles saw a 32% increase, shipping 2,322 units.
Positive Trends for FY2025
The rise in Indian vehicle exports during the first half of FY2025 has created a positive outlook for the rest of the fiscal year. Demand for made-in-India vehicles is growing in key global markets, and manufacturers are benefiting from this increased demand. The export market offers better profit margins compared to domestic sales, which further strengthens the outlook for vehicle manufacturers.
Additionally, manufacturers are managing their production and inventory well by balancing domestic and export markets. This strategic management helps them keep production lines running smoothly, even when demand fluctuates in either market. The recovery in global demand for vehicles, particularly in regions like Southeast Asia, Africa, and Latin America, is expected to further boost Indian vehicle exports in the second half of FY2025.
*This article has been referred from Autocar Professional.*
