PV Exports Grow 13 pc In June qtr, FY26 Exports To Surpass FY22 Levels
In the June quarter, passenger vehicle exports grew to 2,04,330 units in the June quarter, 13.2 per cent higher than 1,80,483 units. Of this, the largest segment- passenger cars- grew by 2.8 per cent, utility vehicles by 26.2 per cent and vans by 34 per cent, as per the data of SIAM
Chennai: Passenger vehicle exports have registered 13 per cent growth in the June quarter. Exports have been recovering in FY25 from the slump in two previous years and has inched closer to FY22 levels. Despite the global uncertainties, the industry is hopeful of steady growth.
In the June quarter, passenger vehicle exports grew to 2,04,330 units in the June quarter, 13.2 per cent higher than 1,80,483 units. Of this, the largest segment- passenger cars- grew by 2.8 per cent, utility vehicles by 26.2 per cent and vans by 34 per cent, as per the data of SIAM.
While the recent escalation in tariffs and geopolitical tensions pose serious risks to global economic growth, the industry finds that the auto exports are strategically placed to better endure the global slowdown as most major export markets for Indian OEMs – specifically in Middle East and Latin America – are expected to witness higher GDP growth in 2025 than in 2024.
“We have seen good growth in FY25, and we expect the momentum to continue in FY26 as well,” said Rajesh Menon, director general of SIAM.
“Indian automotive exports will continue to increase in FY26 in high single digits to low double digits, with growth likely across industry segments. Improving macroeconomic conditions across key export markets, expansion into new geographies and rising global acceptance of domestically manufactured vehicles will lead to this growth. Moreover, domestic OEMs are strategically looking at exports to not only expand their global footprint but also mitigate the impact of any potential slowdown in the domestic markets,” says Shruti Saboo, Director, Corporate Ratings, Ind-Ra.
After the slowdown in FY23 and FY24, passenger vehicle exports had made significant recovery in FY25. In FY21 global slowdown, exacerbated by the COVID-19 pandemic, and the gradual exit of global OEMs, such as The Ford Motor Company and General Motors, saw a dip in exports to 32,83,000 units, Post COVID-19, pent-up demand along with diversification of global supply chains and a push for domestic manufacturing of export-bound products led to a surge in exports in FY22 to 44,33,000 units. After the demand normalised, FY23 and FY24 saw slower exports. But FY25 made a significant recovery to 41,98,000 units.
Significant growth in exports by Japanese and South Korean automakers helped more than offset the vacuum created by the exit of American automakers. The export-led growth by Maruti Suzuki also supported the export momentum.
