Constraints in overseas markets such as Europe, Sri Lanka and Algeria have had an adverse effect on car exports from India. As per data received from Society of Indian Automobile Manufacturers (SIAM) during 2014-15, car exports from the country dipped by 1.66% to stand at 5,42,082 units as against 5,51,218 units exported in 2013-14.
Out of all the leading car manufacturers in India, it was the country’s largest car exporter Hyundai Motors India Limited (HMIL) that reported a steep fall in exports to the tune of 18.02%. The company exports declined to 1,91,221 units in 2014-15 as compared to 2,33,260 units exported in 2013-14.
Unlike dip in exports reported by HMIL, Maruti Suzuki India Limited reported rising exports to the tune of 9.77%. During 2013-14, the company exported 99,832 units while in 2014-15, exports increased to 1,09,593 units. Nissan Motors also saw increase in exports during 2014-15 to the extent of 3.57%. The company exported 1,16,113 units in 2013-14 which increased to 1,20,266 units in 2014-15. However, Toyota Kirloskar Motors also saw a decline in exports by 35.42% while Volkswagen exports increased two fold to 64,994 units.
Reasons for decline in exports were due to various reasons. Indian car manufacturers are facing higher taxations issues in Sri Lanka, while in Algeria the government has introduced overnight changes in technical regulations. Exports to Europe have dipped due to persistent slowdown.
Conversely domestic car sales have noted a recovery to the tune of 4.99% in 2014-15 following lower fuel prices, reduced interest rates and improved buyer sentiments. According to SIAM, domestic car sales stood at 18,76,017 in 2014-15 as against 17,86,826 units in 2013-14.