Market decline

Strong export growth mitigates domestic market decline for PV, 2W and 3W OEMs


It has been a difficult year for India Auto Inc, facing multiple challenges – from the continued shortage of chips, rising commodity prices, high fuel prices, and weak demand from resulting consumers. Captains of the industry hoped November with Diwali would bring sales, but their hopes were dashed. Apex industry body SIAM has released wholesale figures for November and April-November and there is a lot of red ink splashed across all vehicle segments.

Passenger vehicle sales are down 19% year-on-year (215,626 units), two-wheelers down 34% (10 50,616 units) and three-wheelers also down 7% (22,471 units). Combined, these three segments are down 32% in November, but the worrying monthly growth is also down, by 28%. All of these figures describe the history of the internal market.

Indian auto exports up 62% in April-November 2021
The story of exports is very different, and as export statistics from April to November 2021 reveal, the PV, two and three wheel segments are in full swing.

Look at the data table by segment above and it is quite clear that there is reason to be happy with products made in India when it comes to shipping them overseas. Total export sales of 36,913,583 units represent strong growth of 62% year-on-year. Importantly, each segment delivered in spades. PV at 368,605 units are up 58%, two-wheelers with nearly 3 million units recorded growth of 64% and three-wheelers, with 343,139 units, are up 47%. And Bajaj Auto’s quadricycles are also making their contribution with 137% growth. Let’s take a closer look by segment.

Maruti Suzuki takes the lead and posts best exports to date
Eight months after the start of the exercise, Maruti Suzuki India strengthened its hold on the export market. With shipments of 145,906 units, it recorded 192% year-on-year growth and accounts for 40% of total PV exports. In the wake, and four months into the fiscal year, the automaker has already recorded its best annual exports – see data table below

What is remarkable about this performance is that despite difficult times in the domestic market, mainly due to the shortage of electronic components and chips, the automaker focused on delivering shipments to the United States. foreigner, responding to demand.

Expect the Baleno, S-Presso, Dzire, Swift, Vitara Brezza and Jimny to be the automaker’s top six models on the export demand front.

Export market leader for fiscal year 2021 Hyundai Motor India, at this point, is considerably behind Maruti. While it has 83,438 units for export (+ 53%), Hyundai promises to be difficult to catch up with by Maruti Suzuki, which is showing a sustained pace this year. The difference between the two equipment manufacturers is 62,468 units. The main contributors to Hyundai sales were the Creta (19,840), the Verna (19,301) and the Venue (4,903). The new Alcazar also begins to be exported (1672).

Hyundai Motor India, which snatched the title of No.1 exporter of India-made passenger vehicles (PV) from Ford India in fiscal year 2020, and also won the title in FY 2021, will need to export significantly more if he is to retain the title of PV # 1 exporter in FY 2022.

Kia India, with 30,738 units and 28% year-on-year growth, is in third place, which it gets thanks to Seltos (19,500) and Sonet (11,238). However, year-on-year demand for the Seltos is down 13% (April-November 2020: 22,495) while that of the Sonet has jumped 656% (April-November 2020: 1,486), albeit on a weak a year ago.

Fourth Volkswagen India shipped 26,282 units, up 10%, with major models including the Vento sedan (18,987) and the Polo sedan (7,295) hatchback. Nissan Motor India is in a good fifth place with 24,581 units and 152% year-on-year growth, with the export-only Sunny sedan selling 18,044 units and recording 147% year-on-year growth (April-November 2020 : 7 299)

Ford India, which withdrew from the Indian domestic market but continues its export business, shipped 18,022 vehicles from the port of Chennai. Its main export product was, as always, the EcoSport SUV with 15,382 units, down 35% year on year. It is the only OEM to be in negative territory.

Renault India (15,710 units / 262%) and Honda Cars India (11,918 units) both posted strong exports.

Bajaj the big boss of two-wheeler exports
The two-wheeler industry, which is witnessing a drop in demand on the domestic market, especially for entry-level products, is pulling at full speed with exports. Its performance in April-November is one indication: 29 75 952 units, up 64% year-on-year (April-November 2020: 18 09 58).

Bajaj Auto, which has always been strong in exports, maintains its grip with shipments of 14 84 605 units (+ 45%) and representing 50% of total exports of two-wheelers.

TVS Motor Co, India’s second largest exporter, recorded a solid performance with 724,777 units (up 82%) and represents 24.35% of total exports. Bajaj Auto and TVS together control nearly 75% of India’s overall two-wheeler exports.

The big bright spot for the Indian two-wheeler industry is that export demand is driven by all the key players. While Honda Motorcycle & Scooter India (HMSI), which exported 237,028 units, doubled its export performance, MotoCorp Heroes shipped 197,337 units, growing 102% year-on-year. The export sales chart below describes the story of the growth, which can only improve.

Bajaj and TVS also fuel three-wheeler exports
The three-wheeler industry is also making the most of the export demand that arises. With total shipments of 343,139 units in the first eight months of fiscal 2022, growth was solid 47% year-on-year.

The top two players in this segment are the same as in the two-wheeler segment: Bajaj Auto and TVS Motor Co. While Bajaj Auto with 214,147 units (up 36%) accounts for 62% of total exports, TVS with 109,838 units (up 71%) accounts for 32% of the export market share. Together, they represent 94% of three-wheeler exports. At n ° 3 is Piaggio vehicles with 15,439 units (up 76%) has a market share of 4.49%.

Growth prospects
With four months to the end of fiscal 2022, the cumulative history of manufactured exports in India can only improve. Photovoltaic exports are expected to cross 404,400 units in fiscal 2021, although they are well below the 662,118 units in fiscal 2020. Likewise, two-wheeler exports, currently at 29,755,952 units, will exceed easily the 32 77 724 units of the 2021 financial year and will even come close to the 35 19 405 units of the 2020 financial year. The three-wheelers – 343 139 in April-November 2021 – are within the reach of the 392 941 units of the fiscal year 2021 but far from the 501,651 units for fiscal year 2020, a year prior to Covid.

All in all, the mantra of exporting itself remains a winner: not only is it a high-margin revenue stream, but it keeps the manufacturing plant buzzing even in tough times in the domestic market.