It is turning out to be a case of double whammy for Indian automobile manufacturers. While domestic demand has considerably slipped, the significant drop in exports in the first two months of the current fiscal has only added to their woes.
“In April-May 2019, overall automobile exports declined by (-) 0.27 percent. While Passenger Vehicles and Two Wheelers exports grew by 5.24 percent and 1.65 percent respectively and Commercial Vehicles and Three Wheelers registered a de-growth of (-) 55.01 percent, and (-) 10.91 percent respectively in April-May 2019 over the same period last year,” apex industry body of automobile manufacturers SIAM maintained in its latest sales analysis report.
Commercial vehicles especially have been at the receiving end of the exports decline. The medium and heavy goods carrier stood at 1,712 units in April-May 2019 as against 5,348 units sold abroad in the same period last year. In light commercial vehicle goods segment, the figure nosedived from a high of 7,195 to 3,451 units.