Auto exports expected to remain weak due to sluggish demand from major markets

Mumbai: A report has estimated that exports of autos and auto accessories from the country will remain weak in the current financial year due to sluggish demand from major export centres.

Africa and South Asia are traditional markets for the Indian auto industry. However, the presence of Indian auto companies is expected to increase in countries like Latin America, the Middle East and the Philippines.

Auto accessories export earnings witnessed a marginal growth of 2.70% in H1FY2024 and the figure stood at 5.20% in H1FY2023.

Economic challenges and geopolitical issues are impacting exports from the last six months of FY2024 to the first six months of FY2025, resulting in lower exports for the entire year of FY2025.

The rating agency's report has also estimated that due to weak exports, the revenue growth of this industry will be limited to 6-8 percent annually.

Keeping in mind the domestic Lok Sabha elections in the current year, the auto sector's sales volumes are expected to grow by 6 to 9 percent.