India Passenger Vehicle Exports Fall 17% In August Despite Record Domestic Sales Growth

India’s passenger vehicle industry witnessed a sharp divergence between domestic sales and exports in August, with local dispatches reaching a record high while overseas shipments declined.

Passenger vehicle exports fell 17% year-on-year to 68,230 units, compared with 82,246 units in the same month last year, according to data released by the Society of Indian Automobile Manufacturers (Siam) cited by a report in Business Standard.

The decline was mainly driven by a steep fall in passenger car exports, which dropped 51.5% to 21,181 units. However, utility vehicle exports provided some support, rising 23.7% to 46,400 units. Van exports declined 39.6% to 649 units.

Domestic PV demand hits record levels

Domestic passenger vehicle dispatches surged 36.5% to 439,309 units in August from 321,901 units a year earlier, marking the highest-ever sales figure for the month. Automakers increased supplies ahead of the festive season, supported by improving demand conditions.

Utility vehicle dispatches climbed 39.2% to 250,084 units, while passenger car sales rose 23.8% to 112,011 units. Van sales also increased 10.9% to 11,961 units.

Production levels strengthened as well, with overall PV output rising 25.7% to 454,266 units. Utility vehicle production grew 28.3%, passenger car manufacturing increased 22.1%, and van output rose 11.5%.

Siam said the growth was supported by a favourable base effect and continued demand momentum.

Two-wheelers and three-wheelers maintain export momentum

Menon added that strong consumer confidence, resilient rural demand and better financing availability were supporting the sector, with the festive season expected to further boost sales.

While passenger vehicle exports declined, other segments performed better. Two-wheeler exports increased 28.5% to 555,292 units, while domestic two-wheeler dispatches grew 10.5% to 2.03 million units.

Three-wheeler exports rose 31.3% to 56,166 units, with domestic sales increasing 22.8% to 93,764 units.