The Automobile Industry in India has shown tremendous growth in exporting vehicles in 2022. Even though this sector had an uneven development this year, the automobile exports have given the required boost needed. In 2021, the shortage of semiconductors and the uncertainty about the covid-19 new variants. But, 2022 has laid a solid foundation for the automobile sector of India. With the end of the shortage of semiconductors and the world moving towards normal, it is observed that consumer spending patterns are getting back to normal. Now, consumers are preferring personal vehicles over public transport because of the Covid-19 pandemic. This has led to the rise of automotive exports.
Passenger Vehicles (PV) Exports:
The passenger vehicle market observed a 43% growth in exports, as per the reports of the Society of Indian Automobile Manufacturers (SIAM). In this tremendous growth, Maruti Suzuki India (MSI) is the leader with the dispatch of 230,000 units in FY2022. Maruti Suzuki India gave out their reports on the year-on-year increase in their sale for March 2022. Their sales rose from 167,014 to 170,395. MSI also shipped about 1,958 Light Commercial vehicles (LSV).
Hyundai Motors India observed a 6.1% growth in FY2022 for its sales. Their sales increase from 575,877 to 610,760 units. They became the second-highest exporter of PV in India. With a 30% rise in its PV exports, Hyundai has already exported 119,000 units.
Another automobile giant in India, Tata Motors, also showed a strong performance in the PV and Electric vehicle (EV) segment. They achieved their highest ever sales at 370,372 in the Passenger vehicles and Electric vehicle segments. While the overall growth of the company in march 2022 was 30%.
In the case of Mahindra & Mahindra, their sales had a 65% growth with a sale of 27,603 units.
India’s Two-Wheeler Exports:
Approximately 80% of India’s Vehicle exports are two-wheeler vehicles. And this segment recorded a 40% growth with the esports of around 4,091,777 units.
Bajaj Auto is a company that exports one out of two Two-wheelers in India. They exported around 2,046,529 units in the first 11 months of this fiscal year. TVS Motors Co. also recorded around a 51% increase in their shipments of two-wheelers. The two-wheelers should have the Two wheeler insurance at the first place for no future risks.
From April-December 2021 to 2022, the van exports of India approximately doubled with an export volume of 1,621.
One Vital reason for this exponential growth of automobile exports is because of the efficient supply of semiconductors. This is because semiconductor helps in improving the efficiency of an engine and helps in lower emissions. Important features like safety, emergency braking systems, airbag deployment systems, etc., are dependent on the semiconductors. So, a good supply of these essential raw materials increased production and helped the increase exports in the automobile industry.
Another crucial factor, that contributed here is that after the global pandemic, consumer preference changed. People started preferring to have personal vehicles over public transport. The reason is to avoid public transport in the fear of the outburst of another covid variant.
Many other factors also contributed to the rise of the automobile industry.