Last month, the exports of passenger vehicles (PV), two- and three-wheelers witnessed a decline of 35% due to the weakening of currencies against the US dollar in destination countries, especially in the African continent. Data released by the Society of Indian Automobile Manufacturers (SIAM), two-wheeler, three-wheeler and PV shipments declined to 3,01,561 units last month from 4,63,025 units in the corresponding month a year ago.
Shipments of two-wheelers dipped 37% to 2,35,087 units in February from 3,75,689 units in the year-ago period. While motorcycle exports declined to 2,01,097 units last month from 3,49,221 units in the year-ago period, scooter exports, however, rose to 33,378 units from 24,830 units in February of 2022.
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Total exports of three-wheelers dipped 45% to 19,640 units in February from 35,997 units in the same month last year. As for passenger vehicles, total exports declined 9% to 46,486 units from 51,213 units in the year-ago period, SIAM data showed. While shipments of passenger cars declined to 25,207 units last month from 33,515 units in February of 2022, exports of utility vehicles dropped to 21,139 units from 17,623 units in the year-ago period. Van shipments, however, rose to 140 units from 75 units in the year-ago period.
The dip in exports come as there has been a devaluation of currencies in many export destinations, especially in Africa and other developing countries. These countries have been facing challenges of availability of foreign reserves. This has led to limited sales of vehicles as these countries focus more on imports of essential items, even though demand for vehicles from consumers exists in these markets, SIAM Director General Rajesh Menon told PTI.
He added that exports of passenger vehicles are not much impacted due to currency devaluation. In case of passenger vehicle segment, the profile of the customers to secure loans from the banks are also better, hence the vertical continues to grow,” he noted.
First Published Date: 14 Mar 2023, 10:44 AM IST