Car Exports on Track to Reach Pre-Covid Levels

Made-in-India car exports are on track to reach pre-Covid levels, despite global uncertainties, driven by increased demand for popular models such as the Hyundai Creta, Maruti Suzuki Grand Vitara, Kia Seltos, and Mahindra XUV700 from customers in Australia, Latin America, and Southeast Asia.

Industry estimates indicate that Indian automakers are expected to export over 675,000 vehicles in the fiscal year ending March 31, rebounding from a low of 404,000 recorded in the aftermath of the pandemic in FY21. Around 663,000 cars were exported from India in the previous financial year.

Maruti Suzuki and Hyundai dominated vehicle exports, accounting for two-thirds of all cars shipped out of the country.

Homegrown auto manufacturers like Tata Motors and Mahindra & Mahindra had a modest share of 0.4% and 2%, respectively, according to industry data.

Kia, Volkswagen, and Nissan are among the top five carmakers exporting from India, with shares of 9%, 7%, and 6%, respectively.

While Tata Motors and Mahindra & Mahindra have been striving to increase exports over the years, the lack of a relevant product portfolio with high quality and features has constrained overseas sales, experts noted.

"Indian companies like Tata Motors and Mahindra & Mahindra (M&M) have been trying to scale up exports for many years now," said VG Ramakrishnan, managing partner at consultancy firm Avanteum Advisors. "However, they did not have the right products for international markets, where customers are very discerning about quality, specifications, brand commitments. Even in a market like Sri Lanka, where a lot of used cars are sold, buyers look for right-hand drive models from Japan which have more features."

Nevertheless, with both companies working on launching a range of world-class products, the portfolio has improved, and international sales have gradually started increasing. "Their share in exports may still be low. But overseas sales are slowly improving," he added.