Two-Wheeler & Utility Vehicle Exports Drive India's 40.2% Auto Export Growth

New Delhi, Feb 14 (KNN) The Indian automotive sector commenced 2025 with remarkable export performance, registering a substantial 40.2 percent year-over-year growth in January. 

Data released by the Society of Indian Automobile Manufacturers (Siam) reveals significant expansion across all major segments, with passenger vehicles, two-wheelers, and three-wheelers all achieving double-digit growth.

Passenger vehicle exports rose by 17 percent to 57,585 units, while two-wheeler exports demonstrated exceptional growth of 46.2 percent, reaching 380,528 units. 

The three-wheeler segment also showed strong performance with a 20 percent increase to 23,859 units. These figures stand in stark contrast to relatively modest domestic market performance, where passenger vehicle dispatches grew by just 1.6 percent to 399,386 units, two-wheelers by 2.1 percent to 1,526,218 units, and three-wheelers by 7.7 percent to 58,167 units.

A detailed analysis of the export data reveals interesting segment-specific trends. While car exports experienced a 13 percent decline year-on-year, utility vehicle exports surged by 61.5 percent. 

The two-wheeler category showed comprehensive growth, with scooter exports increasing by 23.5 percent and motorcycle exports rising by 49.7 percent. 

Major manufacturers including Maruti Suzuki India, Hyundai Motor India, Bajaj Auto, Hero MotoCorp, and Honda Motorcycle and Scooter India all reported growth in their export volumes.

The strong performance extends beyond January, with cumulative exports for the April-January period showing a 20 percent increase. 

Passenger vehicles grew by 14.4 percent, and two-wheelers recorded a 23 percent rise, while three-wheeler exports remained stable. 

Maruti Suzuki India demonstrated particularly strong growth with a 38.2 percent increase in exports during Q3FY25, reaching 99,220 units. The company is also planning to prioritise global markets for its new e-Vitara model.

However, challenges persist in certain markets. Hyundai Motor India reported a decline in export volumes to 40,386 units in Q3FY25, primarily due to Red Sea disruptions and geopolitical tensions affecting Middle East and Latin American markets. 

The company has responded by increasing focus on African markets with additional incentives to maintain export stability.

Bajaj Auto reported encouraging results in the two-wheeler segment, achieving exports of over 500,000 units in Q3FY25, marking its best performance in nine quarters. 

The company's export revenues grew by 16 percent to Rs 4,500 crore, with management expressing optimism about continued growth, particularly in Latin American markets.

Industry experts, including Siam Director General Rajesh Menon, attribute this positive momentum to recent policy measures. 

The Union Budget's focus on long-term economic growth, changes in personal income tax, and the Reserve Bank of India's interest rate reductions are expected to enhance consumer confidence and sustain growth in the automotive sector.

(KNN Bureau)