India’s auto exports decline over 11% in July

The Dollar Business Bureau

India’s overall automobile exports have declined 11.53% at 3.05 lakh units in July 2016 when compared to 3.44 lakh units in the same month last year, as per the data released by Society of Indian Automobile Manufacturers (SIAM) on Wednesday.

During the month, the exports of Passenger Vehicles (PVs) and Commercial Vehicles (CVs) have registered a growth of 3.23% and 13.21% respectively. But, the exports of three-wheelers and two-wheelers have witnessed a dip by 21.86% and 14.61% respectively in July 2016 over the same month previous year.

According to SIAM data, total automobile exports decreased by 10.2% at 11.34 lakh units in April-July 2016 against 12.63 lakh units in the corresponding period last year. While exports of PVs and CVs have grown 9.49% and 8.84%, three-wheeler and two-wheeler exports have declined drastically by 40.42% and 10.03% respectively in April-July 2016 against the corresponding period previous year.

The apex body for auto manufacturers has urged the government to consider a payment mechanism based on Indian currency for trading with African countries. The Department of Commerce is yet to take a decision on the SIAM’s suggestion to consider rupee-based payment mechanism.

Africa contributes more than 23% of the overall vehicle exports from India that stood at $2 billion out of the total $8.8 billion during FY 2016, Minister for Heavy Industries and Public Enterprises Babul Supriyo said in a written reply to the Lok Sabha on Tuesday.

In another reply, the minister said that the government would interact with the automobile industry of the country. Department of Heavy Industry is actively working on the Automotive Mission Plan 2016-26 to support the growth of this sector and foster in the next decade of the plan period.

The overall automobile industry production has increased 9.97% at 85,88,464 vehicles including PVs, CVs, three-wheelers, two-wheelers and quadricycle in April-July 2016, against 78,09,525 in the corresponding a year ago. Only in last month, the production has up surged 5.02% at 21,56,969 vehicles over 20,53,887 units in the same month previous year.

Within the country, the sales of PVs and CVs rose 9.23% and 9.65% respectively in April-July 2016 over the corresponding period last year. The domestic sales of three-wheelers and two-wheelers increased 17.32% and 14.08% in April-July 2016 over the same period previous year.