Automobile exports from India decline by 5% in 2016
India's automobile exports across categories fell 5 % in 2016 dragged down by lower sales of two and three-wheelers in various markets, including Latin America and Africa.
According to latest data by Society of Indian Automobile Manufactures (SIAM), overall exports during the last year stood at 34,34,322 units as compared to 36,14,851 units in 2015, down 4.99 %.
Two-wheeler and three-wheeler exports pulled down the overall exports during the last year even as overseas shipments in segments like passenger vehicles and commercial vehicles grew in double digits.
Major markets in Latin America and Africa continued to reel under high inflation and currency devaluation thereby impacting demand for vehicles exported from India.
Three-wheelers exports stood at 2,88,732 units in 2016 as compared to 4,24,881 units in January-December period of 2015, down 32.04 %.
Two-wheeler exports last year stood at 22,94,123 units as compared with 24,60,471 units in 2015, down 6.76 %.
Motorcycle shipments during the year stood at 19,81,927 units, down 10.96 %, as compared to 22,25,837 units in 2015.
Scooter exports were up 33.95 % during the year at 2,94,318 units as against 2,19,724 units in 2015.
Commenting on the situation, Price Waterhouse Partner and auto expert Abdul Majeed told PTI: "Most of the exports markets are not doing well, especially countries depending on commodity and oil exports.
The whole of South American and African economies are struggling."
Exports of passenger vehicle, however, increased by 17.13 % to 7,38,454 units in 2016 as compared to 6,30,474 units in 2015.
Utility vehicles saw the biggest jump in exports at 1,56,295 units, up 52.62 %, from 1,02,411 units in 2015. Overseas shipments of passenger cars stood at 5,79,635 units, up 10.12 % from 5,26,385 units in 2015.
Van exports rose 50.42 % to 2,524 units.
Similarly, total exports of commercial vehicles stood at 1,11,319 units in 2016, up 12.55 % from 98,909 units in 2015.
In the domestic market, sales across categories rose by 9.17 % at 2,19,01,572 units in the January-December period of 2016 as compared with 2,00,61,389 units in 2015.
Two wheeler sales rose by 9.7 % to 1,76,86,563 units during the year, despite taking a hit of over 22 % in December sales owing to high value currency pullback initiative by the government.
Total three-wheeler sales rose 6.12 %, commercial vehicles by 7.67 %, while passenger vehicles increased by 7.01 % in the domestic market during 2016.