VEHICLE EXPORTS DROPPED BY 7% IN FEBRUARY

 For the first time this fiscal, overall vehicle exports from India have shown a decline. According to figures released by the Society of Indian Automobile Manufacturers (Siam), exports fell by 7% to close February at 110,252 units (against 118,512 units).

Though this is a growth from numbers reported in January (103,496 units), the decline compared to the year-ago period is significant. In February, a decline in two-wheeler exports appears to have played spoilsport. Total two-wheeler exports fell by almost 10% to 72,510 units (80,550 units).

Till January, two-wheeler exports were holding up, showing a marginal growth of 16.5% at 69,551 units (59,732 units). But their decline, coupled with decline in commercial vehicle exports and a declining trend in three-wheeler exports perhaps nailed the export coffin. Two-wheeler exports typically account for 65-70% of the total vehicle export basket and therefore, any fall in this category is sure to pull down the overall number.

Within two-wheelers, motorcycles form an overwhelming 95% share of the export basket so that a decline of almost 10% in bike exports last month to 70,447 units (77,998 units) succeeded in pulling down both, the two-wheeler export number as well as total vehicle exports out of India. Within bikes, exports in the executive segment (125 cc and above but less than 250 cc) fell by 36% to 20,483 units (32,055 units) but entry-level bikes continued their good run. Exports in this category were up to 49,774 units (45,863 units).
Surprisingly, moped exports, which have been in decline for most of the year, showed a marginal uptrend last month at 858 units (808 units) even as scooter exports remained in negative territory at 1,205 units (1,744 units).

In February, passenger cars were the only bright spot as a category, registering growth of 31.3% to 26,063 units (19,848 units). But this growth was restricted to hatchbacks, since mid-sized sedan exports declined to 1,499 units (2,082 units). Hatchbacks reported a growth of 55.8% to 24,402 units (15,659 units).

Commercial vehicle exports fell by more than half to close February at 2,017 units (4,976 units).