India’s automobile production journey over the last two decades is a tale of evolution, and adaptability. From steady growth in the early years to weathering economic slowdowns and global disruptions, the industry has seen it all. The data from FY 2004-05 to FY 2023-24 captures key milestones and fluctuations, providing a window into how the sector has grown, faced challenges, and recovered stronger each time. It’s a story of numbers, yes, but also of innovation, perseverance, and the country’s growing reliance on its automobile sector. This article delves into the last 20 year trends in production and exports, offering a closer look at how the industry has evolved over time.
20 Years of Automobile Production: Trends from FY 2004-05 to FY 2023-24
Over the last two decades, India’s automobile production has undergone a remarkable transformation, reflecting the industry's resilience and adaptability to changing market conditions. The data spanning FY 2004-05 to FY 2023-24 reveals significant milestones and periods of fluctuation, highlighting the sector's journey through growth spurts, slowdowns, and recoveries.
Key Highlights -
Steady Growth in Early Years: The automobile industry saw consistent growth from FY 2004-05 (8.5 million units) to FY 2010-11 (17.9 million units). This period marked the rapid adoption of personal vehicles, driven by rising disposable incomes, urbanization, and improved road infrastructure.
Peak Years (2011-2019): Between FY 2011-12 and FY 2018-19, production climbed steadily, reaching its all-time high of 30.9 million units in FY 2018-19. This phase benefited from robust domestic demand, export growth, and a diversified product portfolio across vehicle categories.
COVID-19 Impact and Recovery: The pandemic-induced disruptions caused a sharp decline in production, dropping from 26.4 million units in FY 2019-20 to 22.7 million units in FY 2020-21. However, the industry demonstrated resilience, recovering to 28.4 million units by FY 2023-24, reflecting a strong comeback supported by renewed consumer confidence and economic recovery.
What type of vehicles has India produced over the years?
Ever wondered how India manages to keep up with its growing mobility needs? From nimble scooters weaving through crowded streets to robust commercial trucks powering industries, India’s automobile production lines have been working tirelessly over the years. With a portfolio as diverse as the vehicles on its roads, the industry has steadily evolved, adapting to the country’s changing requirements. Let’s take a closer look at how production trends have shaped up over the last two decades.
Key Highlights -
Two-Wheelers Lead the Way: Two-wheelers have consistently dominated production, accounting for 75-81% of total vehicles manufactured each year. This category’s consistent growth highlights its importance in addressing mobility needs across various demographics.
Rising Production of Passenger Vehicles: The share of passenger vehicles has steadily increased, growing from 14.3% in FY 2004-05 to 17.2% in FY 2023-24. This reflects the growing demand for personal vehicles as incomes rise and infrastructure improves.
Three-Wheelers Maintain Stability: The production of three-wheelers has remained steady over the years, contributing 3-5% to the total output. Their versatility in carrying passengers and goods continues to play a critical role in the transport ecosystem.
Commercial Vehicles Show Consistent Contribution: Commercial vehicles, comprising 4-5% of production, have played a steady role in supporting economic activities, particularly in logistics and goods transportation.
Recent Shifts in Production Trends: While two-wheelers remain dominant, their share has slightly declined in recent years (from 81% in FY 2020-21 to 75.5% in FY 2023-24), reflecting a potential shift in focus toward other categories like passenger vehicles and commercial vehicles.
Changing Customer Preferences: Shift in Passenger Cars Subcategory Mix
The preferences of Indian automobile buyers have undergone a noticeable transformation over the years, particularly within the passenger vehicle segment. From compact cars to versatile utility vehicles, the shift in production trends reflects changing lifestyles, aspirations, and needs of consumers. The data reveals how the mix of passenger cars and utility vehicles has evolved, with utility vehicles gradually taking a larger slice of the production pie. Let’s explore the key highlights of this shift.
Key Highlights -
Growth of Utility Vehicles (UVs): The production of utility vehicles has grown significantly over the years, increasing from 0.2 million in FY 2004-05 to 2.9 million in FY 2023-24. Their share in total passenger vehicle production has expanded, driven by rising demand for SUVs offering greater space, road presence, and off-road capabilities.
Passenger Cars Remain Strong but Stabilizing: Passenger cars continue to be the backbone of the segment, growing steadily from 1.0 million in FY 2004-05 to 2.0 million in FY 2023-24, but their relative share has declined as utility vehicles gain traction.
Post-2020 Surge: The years following the pandemic saw a sharp rise in utility vehicle production, reflecting a shift in consumer preferences toward more versatile and feature-rich vehicles. Utility vehicles overtook passenger cars in production numbers for the first time in FY 2021-22.
Steady Growth in Total Passenger Vehicles: Total passenger vehicle production has seen a steady increase, reaching 4.9 million in FY 2023-24, with utility vehicles contributing the majority.
Changing Lifestyles Driving the Shift: The growing popularity of utility vehicles can be attributed to changing consumer lifestyles, with buyers prioritizing comfort, spacious interiors, and advanced features over compact design.
This data highlights a clear trend—Indian consumers are increasingly favoring utility vehicles over traditional passenger cars, signaling a broader shift in mobility preferences and market dynamics.
How much does India export across categories?
India’s automobile exports have had quite the journey over the years. From bikes and scooters to cars and trucks, vehicles made here have been shipped across the world in impressive numbers. While there have been ups, downs, and the occasional speed bump, the trends show just how much Indian wheels are loved globally. Let’s take a closer look at what’s been driving these numbers.
Key Insights from the Data:
Two-Wheelers Dominate Exports: Two-wheelers remain the largest contributor, peaking at 3.6 million units in FY 2021-22, accounting for the majority of India’s automobile exports over the years.
Passenger Vehicles Gaining Traction: Passenger vehicle exports, including cars and utility vehicles, have steadily increased, reaching 672,105 units in FY 2023-24, showing consistent demand for Indian-made cars globally.
Exports as a Percentage of Total Production: Total exports peaked at 24.4% of production in FY 2021-22, reflecting a strong global demand even during domestic challenges. This share has since stabilized.
Three-Wheelers See a Decline: Three-wheeler exports once peaked at 567,689 units in FY 2018-19, but they have declined to 299,977 units in FY 2023-24, reflecting changing market dynamics.
Commercial Vehicles Play a Smaller Yet Steady Role: Commercial vehicle exports have remained relatively stable, with 65,816 units exported in FY 2023-24, primarily driven by light commercial vehicles.
Post-Pandemic Recovery in Exports: While exports dipped during the pandemic in FY 2020-21, most categories have bounced back, though some, like three-wheelers, are yet to recover fully.
