Indian automotive industry is going through a rough phase, last fiscal has been a patchy ride for the domestic market with slump in sales. Adding to the woes of Indian auto market is the low car export sales that stood at 5,50,466 units in 2013-2014. According to the data collected by SIAM, car exports stood at 5,47,222 units in 2012-2013 which shows that there is a little improvement in exports, however the growth achieved in minimal.
Surprisingly, two of the India’s top car exporters, Hyundai Motor India Ltd and Maruti Suzuki India Ltd registered dip in exports, on the other hand other car makers like Nissan Motor India, Toyota Kirloskar Motor and Volkswagen India witnessed increase in exports in 2013-2014. The largest car exporter of India, Hyundai Motors India Ltd, exports cars to around 110 countries across the globe including Europe, Africa, Middle East, Latin America and Asia.HMILregistered a sharp fall in exports by 10.21 per cent at 2,33,260 units in 2013-2014. In 2012-2013,HMILexported 2,59,811 units to overseas markets. Similarly,MarutiSuzuki India Ltd also witnessed fall in exports by 16 per cent at 99,832 units in 2013-2014 as against 1,18,857 units in 2012-2013.MSIalso exports India made vehicles to a number of countries; demand of Maruti’s compact cars is high in overseas market too.
On the other hand Japanese car makers, Nissan and Toyota recorded increase in exports in 2013-2014 as compared to the previous year’s export sales. Nissan recorded rise in sales by 17.32 per cent at 1,16,113 units, in the 2013-2014 juxtaposed to 98,971 units shipped to overseas markets in 2012-2013. Yet another car maker that hails from Japan, Toyota posted hike in exports by 16.31 per cent at 27,266 units. Besides these two Japanese auto cos, demand of India made cars of Volkswagen also increased almost four times at 32,588 in 2013-2014 as against the previous year.
Slump in exports could be due to low demand for compact cars in Europe which is currently going through a tough time. Also regulatory amendments made in countries like Algeria and SriLanka has affected exports from India. As per data collected by SIAM, domestic market witnessed sharp decline in sales in FY 14 at 17,86,899 units juxtaposed to 18,74,055 units sold in 2012-2013.
Two wheeler market recorded increase in exports in 2013-2014 by 6.52 per cent as against 19,56,378 units shipped to other markets in 2012-2013. Around 19,82,755 units of motorcycle were shipped up by 6.48 percent and 93,931 units of scooter were exported posting a growth of 3.15 per cent.
