Three Wheeler Export Recovers In 2024 Amid Economic Slowdown Globally

India’s three-wheeler export bounces back in 2024 despite economic challenges globally due to recovery in key export destinations like Sri Lanka, Kenya, and Nepal, and the falling of rupees among other reasons.

Data from the Society of Indian Automobile Manufacturers (SIAM) highlighted a modest growth of 1.73 percent in exports for the January-November period in the calendar year 2024. The export has reached 273.548 units compared to 268,888 units in 2023.

The surge in export is followed by two consecutive years of decline with FY23 registering a fall of 26 percent and a 17 percent export dip in Financial year 24.

It is noteworthy the growth comes amid prevailing macroeconomic headwinds, rising inflation, and slowing global growth. Economic challenges faced by key export markets like Sti Lanka, Bangladesh, Nigeria, and Egypt have caused the decline in demand for Indian three-wheelers.

Experts attribute the growth to a note of factors.

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“Sri Lanka, Kenya, and Nepal, which are our key export destinations, are witnessing some recovery after a period of turmoil,” said Anurag Singh, Advisor at Primus. “Furthermore, the depreciation of the Indian Rupee against the US Dollar has made our three-wheelers more competitive in the international market.”

The three-wheeler industry has faced significant challenges in recent years, with exports declining by 11.60 percent in FY20 and 21.70 percent in FY21. However, a strong recovery in FY22, with a growth of 27.20 percent, provided a much-needed boost to the sector.

The recent growth in exports, despite the global economic challenges, indicates a rebounce in demand and provides a positive outlook for the Indian three-wheeler industry.