Truck Export Falls as Oil Based Economies Plummet
Published On May 27, 2016
As most of the world’s oil based economies in Middle East and African countries are declining, commercial vehicle export of many big Indian OEMs have received a fall back. However, the domestic market has resurged very effectively after a long time in both small commercial vehicle and M&HCV segment. Overall fall in terms of percentage is 2.7 percent from 6,826 units in April 2016 compared to 7,014 units in April 2015.
The highest fall was recorded in the small commercial vehicle segment which is 10.2 percent. Talking in terms of units, April 2015 saw the sale of 4,684 units while the number fell down to 4,206 units in April 2016. Out of the entire small commercial vehicle segment, 12.4 percent fall was recorded in goods carrier. In case of OEMs, Ashok Leyland suffered the highest loss with 34.5 percent dip in exports having sold only 668 units in April 2016 (as compared to 1019 units in April 2015).
Other two major OEMs which also ran into the hot water were Tata Motors and Mahindra. While Mahindra’s export numbers declined by 2.4 percent with only 1,949 units sold in April 2016, Tata Motors, which is the biggest exporter, managed to sell only 3,436 units in April 2016 compared to 3,656 units sold in April 2015 (6 percent decline).
Commenting on the scenario, Mr. Abdul Majeed, Partner, PwC, said, “Bulk of the exports of commercial vehicles from India go to countries in Middle East and certain African countries like Nigeria, Algeria and the fall in oil prices over the last one year has seen these economies slowing down.” He further added, “Many OEMs have targeted these selected African countries to build their base for exports. And the slowdown there is making the exports tough.”