Automobile exports rise 3.9% in Apr-Dec amid slide in domestic sales

Exports in the passenger vehicles (PV) segment grew 6% y-o-y, bolstered by higher despatches to Gulf countries, Latin America and South Africa

Overall auto exports from the country rose 3.9 per cent year-on-year (YoY) between April and December of FY20, despite the continuing depressing sentiment in sales. A report by  CARE Ratings shows that automobile sales witnessed the steepest decline of 12.8 per cent YoY in the past five years during April-December. Sales plummeted as price hikes of passenger vehicles and two-wheeler segments due to new safety norms, higher insurance costs, higher ownership costs, liquidity crisis in the NBFC (Non-Banking Financial Companies) sector, reduced turnaround time and increased load carrying capacity for commercial vehicles led to higher inventories and slow movement in