New Delhi: Already grappling with a domestic consumption slowdown, Indian automobile sector's exports have also taken a hit in July, an industry analysis showed on Wednesday.
According to the Engineering Export Promotion Council (EEPC) of India analysis, the export market for auto manufacturers, along with their component vendors, has been depressed, in-sync with other key engineering export items from the country.
The exports of automobile sector, comprising of "motor vehicles, two or three wheelers and auto parts and components" showed a decline of 3.82 per cent in July 2019 over the same month last year.
Besides, the aggregate exports from these three segments dropped on a year-on-year basis from $1.33 billion to $1.28 billion for the month under review.
Commenting on the trend, EEPC India Chairman Ravi Sehgal said: "In a way, the auto makers face a double whammy. Exports too are laggards even as the fall in the domestic market is reported to be quite sharp. It is time to take immediate measures like faster refund of state and central taxes. Besides, steel availability at international prices would be crucial to make automobile exporters competitive."
"There is a strong connect between manufacturing and export of engineering goods. As per the overall GDP data for the first quarter of the current fiscal, manufacturing could barely keep its head above water with 0.6 per cent growth. But engineering exports during the same period slipped badly and fell by 1.86 per cent."