Indian Auto Exports Slump Down

One of the main revenue generators for the Indian automotive industry is the exports. Africa and Latin America are one of biggest export markets for the automobile industry in India. The export figures dropped by 15.87 per cent to 2.44 lakh units in the month of April 2016. The export figures were around 2.90 lakh in April 2015, according to the data given by Society of Indian Automobile Manufacturers (SIAM). This comes after 3 months of continuous growth where January saw a rise of 3.8 per cent, February saw 0.95 per cent growth and March saw a good 6.53 per cent of growth. The reasons for decline in exports were attributed to the challenges faced by African and Latin American markets. Countries such as Brazil, Argentina, Mexico and Nigeria have always been strong markets for export. But at the moment, the Latin American countries have been hit with inflation, which has reduced the purchasing power of the people there.

The worst segment that was hit by a slump in the exports was the 3-wheeler segment. The exports lessened by a massive 61.86 per cent from exactly a year ago. 18,135 units were sold in April 2016 in comparison to 47,548 units sold in April 2015.

Passenger vehicles saw a growth of 6.6 per cent with figure of 53,651 units exported in April 2016. Utility vehicles grew by 30.05 per cent (9,708 units) as compared to last year. Passenger car exports grew by 2.2 per cent, exporting 43,758 units in April 2016.

Motorcycle exports saw a decline of 15.28 per cent in the same time frame. 1, 48,498 units were sold in April 2016 against 1, 75,277 units in April 2015. Scooters though, saw a sharp rise from 9,051 units that were sold in April 2015 to 15,485 units sold in April 2016. Overall, two-wheeler exports declined by 10.8 per cent, exporting 1, 65,456 units this year as compared to 148,498 units last year.

Commercial vehicles too saw a small decline of 2.68 per cent, exporting just 6,826 units in April 2016.

(Source: Indian Express, PTI)