Passenger Vehicle Exports Fall 17% in August Even as Domestic Dispatches Hit Monthly Record

India’s passenger vehicle market moved in two different directions in August. Automakers sent a record number of vehicles to dealers at home ahead of the festive season, but shipments to overseas markets fell sharply from a year earlier. 

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Passenger vehicle exports dropped 17% to 68,230 units during the month, compared with 82,246 units in August last year. Domestic dispatches, meanwhile, climbed 36.5% to 439,309 units from 321,901 units, the highest recorded for the month of August. 

The figures were released by the Society of Indian Automobile Manufacturers (SIAM). 

The export numbers do not include Tata Motors, BMW, Mercedes-Benz, Jaguar Land Rover and Volvo, as SIAM does not have monthly data for these manufacturers. 

Passenger car exports take the biggest hit 

Much of the decline in overseas shipments came from passenger cars. 

Exports in this category nearly halved, falling 51.5% to 21,181 units from 43,650 units in the same month last year. 

Utility vehicles were the exception. Their exports increased 23.7% to 46,400 units, against 37,522 units a year ago. Van exports moved in the opposite direction, declining 39.6% to 649 units. 

The export weakness was therefore not uniform across the passenger vehicle market, with utility vehicles continuing to record year-on-year growth even as passenger car shipments dropped substantially. 

Domestic dispatches surge across passenger vehicles categories 

At home, there were deliveries by automakers in advance of the festival period in August, and the surge could be noted across passenger vehicle categories. 

Aside from Tata Motors and a few luxury vehicle manufacturers, the utility vehicle dispatches surged 39.2% to 250,084 units. The passenger car dispatches increased 23.8% to 112,011 units, while van dispatches were up 10.9% to 11,961 units. 

SIAM attributed part of August's impressive performance to the weaker base of last year, as well as underlying demand, consumer sentiment, healthy rural demand, and better funding situation. 

Production grows by 25.7% 

Manufacturing activity was also higher as firms geared up for increased production at home. 

Passenger vehicle production in August stood at 454,266 units, representing growth of 25.7% from 361,489 units a year ago. 

Utility vehicle production grew by 28.3%, while passenger car production grew by 22.1%. Production of vans increased by 11.5%. 

Production figures were consistent with the strength recorded in domestic dispatches as the festive season approached. 

Two-wheelers and three-wheelers escape export slump 

The decline in exports was limited to the passenger vehicle category. Two-wheelers and three-wheelers registered growth on both frontiers. 

Export of two-wheelers increased 28.5% to 555,292 units in August, while domestic two-wheeler dispatches increased 10.5% to 2.03 million units. 

Similarly, three-wheelers showed an increase. Export was up 31.3% to 56,166 units, while domestic dispatches increased 22.8% to 93,764 units. 

August thus presented a divided picture for the passenger vehicle industry, where domestic dispatches achieved a new record for the month in preparation for festival demand, while exports declined due to a sharp fall in passenger car dispatches offsetting growth in utility vehicles.