Except PVs, exports of two/three-wheelers, CVs decline in FY2022-23

New Delhi

Except passenger vehicles (PVs), exports of commercial vehicles (CVs), three-wheelers and two-wheelers have declined in the last financial year as compared to FY2021-22.

According to the latest data shared by Society of Indian Automobile Manufacturers (SIAM), exports of three-wheelers declined the most by around 27 per cent at 3,65,549 units during 2022-23, as compared with 4,99,730 units in 2021-22. The highest-ever exports before this was in FY2018-19 when the exports of three-wheelers were recorded at around 5.68 lakh units.

Similarly, exports of two-wheelers declined by around 18 per cent at 36,52,122 units during FY2022-23, as compared with 44,43,131 units in 2021-22. The two-wheeler sector recorded highest exports last year.

CV exports also declined by 15 per cent year-on-year to 78,645 units during the year as compared with 92,297 units in the previous financial year. The highest-ever exports were recorded in 2016-17 with around 1.08 lakh units.

However, exports of PVs grew by around 15 per cent to 6,62,891 units during the last financial year as compared with 5,77,875 units in FY2021-22. But, the segment has not reached the highest-ever exports of 2016-17 when the industry recorded an export of 7.59 lakh units, the SIAM data indicated.

Devaluation of currencies

According to Rajesh Menon, Director General, SIAM, two-wheelers, three-wheelers and CVs have seen a drop in exports in the last financial year, as there has been a devaluation of currencies in many destinations of exports, especially in Africa and South Asia.

“These countries have been facing challenges of availability of foreign exchange, which is limiting the sales for vehicles and countries are focusing more on imports of essential items, though the demand for vehicles from consumers exists in these markets,” he told businessline.

Company-wise performance

In the two-wheeler exports, Bajaj Auto, which is the largest exporter in two-wheelers reported a decline of 25 per cent in FY2022-23 to 16,36,956 units as compared with 21,95,772 units in the previous financial year.

On monthly basis, the company has exported 94,715 units of its two-wheelers to the overseas markets, which is a decline of 37 per cent year-on-year (y-o-y) as compared with 1,49,243 units in March 2022.

Similarly, Hero MotoCorp reported a decline of 42.53 per cent to 3,00,624 units of exports during the last financial year as against 1,72,753 units in FY2021-22. In March, the ‘Splendor’ maker exported only 16,612 units as compared with 34,390 two-wheelers in March 2022.

Growth prospects

Going forward, Menon said that the industry was hopeful of reviving the growth trend as the demand still exists in these markets.

“We are very hopeful that we will see a recovery in exports in the current financial year since the demand does exist in these markets,” he added.

According to analysts, the two-wheeler exports may make a strong rebound over the next two financial years. Though volatile, it offers a structural growth opportunity and with inventory correction largely behind, exports could make a sharp come-back with an improvement in macros at the margin, they said.

COMMENT NOW