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Business News/ Industry / Manufacturing/  Slowdown in Africa, Latin America hits auto exports, down 16% in April
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Slowdown in Africa, Latin America hits auto exports, down 16% in April

According to the latest data of Society of Indian Automobile Manufacturers, the domestic industry had shipped 2.90 lakh units in the same month last year

It is after three months of growth that automobile exports fell last month. Photo: Ramesh Pathania/MintPremium
It is after three months of growth that automobile exports fell last month. Photo: Ramesh Pathania/Mint

New Delhi: Automobile exports from India plunged 15.87% to 2.44 lakh units in April due to continuing demand slump in major overseas markets of Africa and Latin America.

According to the latest data of the Society of Indian Automobile Manufacturers (Siam), the domestic industry had shipped 2.90 lakh units in the same month last year.

It is after three months of growth that automobile exports fell last month. In January, shipments had grown by 3.8 %, 0.95% in February and 6.53% in March.

“Exports have declined overall. Every segment seems to have gone down and that is largely because African and Latin American markets are facing a lot of challenges right now," Siam director general Vishnu Mathur told PTI.

Elaborating further he said, decline in commodity exports, downward spiral in crude prices have led to a decline in income in the African markets.

“In Latin America again, their currencies have been badly hit due to inflation. Therefore, the purchasing power of people has gone down there," Mathur added.

Mexico, Argentina, Nigeria and Algeria are some of the largest export markets for the Indian auto industry.

Terming it a global challenge, Mathur said: “We will have to wait and see what happens. I don’t think there is a very immediate high positive outlook because basic structural things need to happen."

In April, three-wheeler exports from the country were the worst hit as shipments declined by 61.86% to 18,135 units compared with 47,548 units a year ago.

Exports of passenger carrier three-wheelers were down by a whopping 62.23% at 17,876 units as against 47,333 units last year.

Total two-wheeler exports during the period under review declined 10.8% to 1,65,456 units compared with 1,85,480 units during the year-ago period.

Motorcycle exports were down 15.28% at 1,48,498 units as against 1,75,277 units in the previous year.

Meanwhile, scooter exports grew by 71.09% to 15,485 units as against 9,051 units last year.

Commercial vehicles exports also declined by 2.68% during the month at 6,826 units.

However, passenger vehicle shipments rose by 6.6% during the last month and stood at 53,651 units. Passenger car exports rose 2.27% to 43,758 units while utility vehicle shipments grew 30.05% to 9,708 units.

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Updated: 15 May 2016, 02:24 PM IST
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