Covid-19 took a massive toll on India’s automobile, parts exports in May: EEPC

The Indian automobile sector, including motor vehicles and two/ three-wheelers, witnessed a 73% drop in exports from $852.3 million in May 2019 to $230.3 million in May 2020. Coming to cumulative terms, the sector witnessed a dip of 83% from $1632.7 million in April-May 2019-20 to $281.1 million during the period April-May 2020-21.

By:Updated: Jun 30, 2020 10:32 AM

covid19 led lockdown hits car sales in india in may 2020

The Covid-19 pandemic has taken a massive toll on India’s automobile exports in May with an annualised erosion of 98% and 65% in shipments to key markets like the US and Mexico, respectively. An analysis by Engineering Exports Promotion Council (EEPC), India’s apex body of engineering exports, pointed out that not only there was an erosion in exports of automobile, exports of auto components had also suffered a major setback in May, with key markets, including the US, Mexico, Germany and Japan, reporting degrowth ranging between 34% and 68%, year-on-year. The automobile sector, including motor vehicles and two/ three wheelers, experienced a 73% drop in exports from $852.3 million in May 2019 to $230.3 million in May 2020.In cumulative terms, the sector witnessed a drop of 83% from $1632.7 million in April-May 2019-20 to $281.1 million in April-May 2020-21.

The exports of auto components and parts recorded 65.5% negative growth last month, moving down from $473.6 million in May 2019 to $163.2 million in the same month this year. In cumulative terms, too, the sector dipped 77.8% from $885.6 million in April-May 2019-20 to $196.3 million in April-May 2020-21. The analysis revealed that the automobiles exports to the US nosedived 98% to mere $1.37 million in May this year from $79.82 million in the same month last year. Likewise, shipments to Mexico dropped over 65% to $42.50 million from $122.98 million. “Supply chains broke down due to mobility restrictions and wave of postponement of foreign orders in the sector led to such massive drop in exports. Of 33 engineering panels, 28 panels recorded negative growth in exports during May 2020 vis-à-vis May 2019,” EEPC India chairman Ravi Sehgal said. The US remained the top importer of auto components in April-May 2020 with a share of 22.33%.

It was followed by Turkey, Germany, Japan and Mexico with shares of 8.30%, 6.89%, 4.34% and 3.79%, respectively.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Auto News