Car exports up only 2.6% in 5 months

Volume impacted after GST roll-out

Indian car exports, which expanded by 16 per cent in the last financial year, grew at a low single digit of 2.62 per cent during the April-August period, thanks to a decline seen by leading exporters like Hyundai and Nissan. Both are seeing a double-digit decline in shipments.

Data from the Society of Indian Automobile Manufacturers show that export of passenger vehicles (cars, utility vehicles and vans) from India expanded just 2.62 per cent during the April-August period of the current financial year to 303,801 units. In the corresponding period of FY17, exports had grown 13.47 per cent to 296,148 vehicles. For the whole of FY17, the country did a record export of 758,830 units. Exports had grown 12 per cent during the April-July period this year. However, a sharp decline of 25 per cent in August has softened the growth rate to a low single digit. Almost all leading players like Ford, Hyundai, Volkswagen and Nissan posted a double-digit decline in shipments last month.

Ford, which recently emerged as the biggest exporter after overtaking Hyundai, saw a 55 per cent dip in exports last month to 7,963 vehicles. "We had a supplier-related issue specific to transmission, which impacted domestic volumes as well as exports in August. The same is getting normalised and is not yet to optimum standards. We would not be able to share the details of the September shipments in advance," said a company spokesperson.