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.
In September, car sales rose 20.61 per cent to 1,29,683 units, while two-wheeler sales grew 7.67 per cent to 8,38,150 units.
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 sales in the commercial vehicle (CV) segment, however, decreased marginally to 2,20,529 units from 2,21,685 units in the same month last year, SIAM said.
“The entry level and the above 25-tonne categories of the CV segment grew, but the middle two categories declined. As the economic activities pick up, the segment will start growing," Chenoy said.