NEW DELHI: Car exports from India in the first half of this fiscal jumped by 35.73 per cent as major manufacturers like Hyundai Motor India and Maruti Suzuki cashed in on scrappage incentives provided in Europe, despite other segments of the auto industry witnessing decline.
According to Society of Indian Automobile Manufacturers Association (SIAM), car exports during April-September stood at 2,10,088 units as against 1,54,783 units in the year-ago period.
The European Union (EU) nations had incentivised buying of new cars in exchange of the old ones under a scrappage programme in May that will run till February 2010.
The growth in exports were largely driven by the country's largest car maker Maruti Suzuki India as its overseas shipments rose over two-fold during April-September to 65,752 units from 29,699 units in the year-ago period, SIAM said.
Hyundai Motor India, the country's largest car exporter Hyundai reported 16.02 per cent jump in exports at 1,39,971 units against 1,20,648 units in the same period last year.
There is, however, a question mark on whether car exports can sustain the momentum it witnessed in the first half of the fiscal as the scrappage scheme is subject to the condition that respective governments in the EU have not exhausted their allocated funds till the deadline.
"The question is whether you will see European car market growing once the scrappage programme is taken back. So we are cautiously optimistic for the export sector in this fiscal," SIAM Director General Dilip Chenoy told reporters here.
According to SIAM's latest data, the overall vehicle exports from India grew by 4.41 per cent during the first half of this fiscal at 8,08,455 units as against 7,74,302 units during the same period of last fiscal.
All other segments of the industry, however, registered decline in overseas sales in April-September period. During the period, motorcycle exports were down marginally at 4,97,611 units compared with 5,02,031 units.
Total two-wheeler exports also fell by 1.30 per cent to 5,12,939 units as against 5,19,684 units in the year-ago period, it added.
Exports of commercial vehicles decreased to 17,466 units in the six months from 27,146 units in the corresponding period in 2008, down 35.66 per cent.
SIAM said exports of the total passenger vehicles, including utility cars, grew by 34.29 per cent in the six months at 2,11,645 as against 1,57,601 units in the same period last year.
In September, total exports from India rose by 10.03 per cent at 1,53,009. The passenger car segment increased to 38,642 units from 31,539 units, up 22.52 per cent.
Source : The Economic Times