After Sales, Exports Face Decline in January
Auto Exports from India have faced a decline in January. Manufacturers shipped 33,909 units overseas in January 2016 versus 41,787 units shipped in January 2015, resulting in a decline of approximately 19%.
Auto industry in India has seen a constant rise for 14 long months. Sadly, this streak broke in January as the car sales dipped for the first time in 15 months. Adding to this concern, the exports from India have also faced a decline in January. Manufacturers shipped 33,909 units overseas in January 2016 versus 41,787 units shipped in January 2015, resulting in a decline of approximately 19%. Reason for this decline is being stated as the change in technical regulations of overseas markets. In January, export vans, utility vehicles and cars, faced a decline of approx 7% as the industry shipped 42,084 units against 45,114 units in January last year.
The top exporter, Hyundai, also experienced a drop in shipments during the last month. The company recorded a massive 56.66 percent dip as it only exported 4,335 units as compared to 10,003 units in January 2015. In 2014-2015, Indian exports to Algeria in passenger vehicles segment accounted for $293 million, to Sri Lanka it stood at $158 million and to UK, it was worth $335 million. Maruti and Toyota also faced a decline in exports of 36.25% and 56.69% respectively.
The problem is being faced in countries like Algeria and Europe. In Sri Lanka, exports are facing high taxation and Europe is still battling a slump. Sugato Sen, Deputy Director General, Society of Indian Automobile Manufacturers (SIAM), said, “We are facing issues in Algeria as they have brought in some changes in technical regulations. We have visited the country to sort out the issues. It is bothering us," When inquired whether the industry is taking any steps regarding this matter, Mr. Sen said, “I don't think they will budge from their stand, we will have to adjust accordingly."