The Indian automobile industry has registered a tremendous growth in its exports in the first 11 months of 2024. According to the report of Society of Indian Automobile Manufacturers i.e. SIAM, during this period, there has been an increase of 7.79 percent in the export of passenger vehicles and about 22 percent increase in the export of two-wheelers.
This data of production between January and November shows that the Indian automobile industry is progressing rapidly in terms of exports. At present, India exports 14.6 percent of the total passenger vehicle production and 16.34 percent of two-wheelers.
India’s target is that in the coming time, 50 percent of the vehicles manufactured in the country should be exported. Industry experts believe that India’s auto exports will continue to grow with double digit growth in the next four to six years. However, automobile retail sales in November 2024 were lower than market expectations.
There were strong sales in October due to the festive season. Whereas in November, only 11.2 percent growth was recorded as compared to the same month last year.
Nearly 48 lakh marriages took place in India in November and December, yet there has been a decline in retail demand for two-wheelers and passenger vehicles. According to the data, retail sales of passenger vehicles declined by 14 percent in November. Whereas two-wheeler sales grew by only 16 percent, which was less than market expectations.
According to the data, apart from two-wheelers, three-wheeler and tractor sales also performed positively. There was a growth of 4.23 percent in three-wheeler sales and 29.88 percent growth in tractor sales, but there was a 6 percent decline in commercial vehicle sales.
India’s automobile industry is achieving new heights in exports. But lack of sales in the domestic market is a matter of concern for the industry. Experts believe that the industry will need a new strategy to maintain stability in demand.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.