Top automakers report a double-digit export increase, led by Maruti
- IBEF
- January 4, 2023
India's exports of passenger vehicles (PVs) increased quickly in Calendar 2022 (CY22), mostly due to a 28% increase in exports by Maruti Suzuki India (MSIL), the nation's largest PV manufacturer. The Society of Indian Automobile Manufacturers (SIAM) revealed that total PV exports increased by 11% to 535,352 units in the first 11 months of 2022.
In 2021–2022, MSIL outperformed Hyundai Motor India (HMIL), a competitor from South Korea, in terms of exports and was able to keep up the pace. According to statistics, HMIL also had a considerable increase in exports in CY22, increasing by 13.7% to 148,300 units from 130,380 units in 2021. MSIL, on the other hand, increased its exports in CY22 from 205,450 to 263,068 units.
MSIL's exports increased by three times when compared to the calendar year 2020 (85,208 units) and by more than two times when compared to the year before the pandemic, 2019 (107,190 units).
In the domestic market, Hyundai had its highest-ever sales in 2022, selling 552,500 units, an increase of 9% over the 505,033 units sold in 2021. It can produce about 750,000 units annually at its installed capacity.
The problem of the semiconductor chip scarcity tapering off led to a swift increase in output among the automakers. For the majority of participants, capacity utilization increased starting in the middle of 2022; in certain months, MSIL employed about 95% of its capacity. The aggregate installed capacity of the Manesar, Gurugram, and Gujarat factories is 2.25 million units annually. Work has already started at the company's new site in Kharkhoda, Haryana. With a first phase installed production capacity of 250,000 units, the factory is anticipated to be operational by 2025.
The exit of companies like Ford and General Motors was a significant setback for the Indian export sector in recent years. While optimistic about the local market, which is projected to increase by 5–6% in 2023, analysts warn that Indian manufacturers would have to sacrifice exports in order to maintain this domestic growth.
The exports of Mahindra & Mahindra increased by 12.2% in 2022, including those of its farm equipment segment. Data from SIAM show that the company’s PV exports decreased from 6,376 units from April to November 2021 to 5,444 units from April to November 2022.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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