Indian Auto Industry Soars High In Domestic Market, Exports Still A Challenge

Mobility Outlook Bureau
12 Dec 2023
05:55 PM
1 Min Read

The domestic sales for the industry increased by 26.5% YoY to 19.71 lakh units while the exports fell to 3.58 lakh units, a drop of 3.56% as compared to last November.


SIAM Mobility Outlook

The Indian auto industry continues on its track of increasing domestic sales and decreasing exports as it crosses the month of festivities, November 2023. The industry witnessed an increase of production by 9.1% YoY in the month to 22.28 lakh units manufactured overall.

The domestic sales for the industry increased by 26.5% YoY to 19.71 lakh units while the exports fell to 3.58 lakh units, a drop of 3.56% as compared to last November.

The most promising segment has been the passenger cars segment, which despite the high numbers of last year, has managed to grow by 4.2% YoY to 2.88 lakh units in the domestic market, while the exports for passenger cars has increased to 54,092 units, an increase of 0.24%.

Rajesh Menon, Director General, SIAM, said that Passenger Vehicles posted the highest ever sales in the month of November 2023 of 3.34 Lakh units, albeit with a growth rate of 3.7% (excluding Tata Motors), in the backdrop of a high base last November.

However, the production for the four wheeler segment has seen a drop by 3.9% to 3.30 lakh units. This is due to the high inventory rate for the cars segment which as per the FADA date is at over 60 days.

Three wheeler on the other hand has seen an increase of almost 31% YoY in domestic sales to 59,738 units in November’23 while the exports have gone down to 26,146 units, a drop of 15.35%. A similar story can be seen for the two-wheeler segment which managed to grow by an impressive 31.31% YoY in the domestic market to 16.23 lakh units while the exports have reduced to 2.78 lakh units with a drop rate of 3.07% YoY.

Menon further added that with this three-wheelers segment was just below the peak of November 2017 while the Two-Wheelers segment is also slightly below the peak to November 2018.

Vinod Aggarwal, President, SIAM, said that all segments of the automobile industry witnessed robust growth during the festival season which ended in the first part of November.

Commercial Vehicles sales matched last year’s levels, supported by strong economic growth, Industry is optimistic in ending the year 2023 on a high note and expects the trend to continue into 2024, he added.

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