Covid-19 puts brakes on automobile, auto parts exports in May: EEPC India
Kolkata/IBNS: Covid-19 public health crisis has taken a massive toll on exports of India's automobiles in May, 2020 with as much annualised erosion as 98 per cent and 65 per cent in shipments to key markets like the US and Mexico respectively, according to an EEPC India analysis.
Exports of auto components too suffered a major setback in May, 2020 with key markets including the US, Mexico, Germany and Japan reporting de-growth ranging between 34 per cent and 68 per cent , year-on-year.
The total exports of Auto Components and parts recorded 65.5 per cent negative growth during May 2020, moving down from USD 473.6 million in May 2019 to USD 163.2 million in May this year.
In cumulative terms too, the sector dipped by 77.8 per cent from USD 885.6 million in April-May 2019-20 to USD 196.3 million in April-May 2020-21.
The automobile sector (including Motor Vehicles and Two/Three Wheelers) experienced drop in exports by 73 per cent from USD 852.3 million in May 2019 to USD 230.3 million in May 2020.In cumulative terms also, the sector dropped by 83 per cent from USD 1632.7 million in April-May 2019-20 to USD 281.1 million in April-may 2020-21.
The automobiles exports to the US nosedived by 98 per cent to mere USD 1.37 million in May,2020 from USD 79.82 million in the same month last year. Likewise, shipments to Mexico, another important market for Indian automobiles,dropped by over 65 per cent to USD 42.50 million from USD 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. Out of 33 engineering panels, 28 panels recorded negative growth in exports during May 2020 vis-à-vis May 2019, '' EEPC India Chairman Mr Ravi Sehgal said, summarising the sharp erosion in exports.
USA remained the top importer of auto components in April 2020 - May 2020 with a share of 22.33 per cent. It is followed by Turkey, Germany, Japan and Mexico with respective shares of 8.30 per cent, 6.89 per cent, 4.34 per cent and 3.79 per cent.