Source: The Economic Times, Sept 06, 2016
Mexico has emerged as the top destination for India’s automobile exports, making a compelling case for the Indian engineering exporters to further push forward in the growing south American markets, according to EEPC India.
The EEPC India, which would be organising India Pavilion at Expo National Ferretera 2016 to be held in Guadalajara (Mexico) later this week, came up with an analysis which found that the neighbouring US occupied the highest slot for outward shipments of the automobile components, according to April-July data analysis by the engineering exports body EEPC India.
Of the total automobile exports of $2.78 billion between April and July this fiscal, as much as $501 million were shipped to Mexico, followed by Nepal at $157 million and UK at $130 million.
These exports to Mexico saw a phenomenal rise of 110 per cent while for Nepal, the increase was even more impressive at 120 per cent for the period under review. For the UK exports, the rise was 22 per cent.
“Auto exports to Mexico were not constrained by a vast distance that our shipments have to cover. Mexico has come to account for as much as 18 per cent of India’s total automobile exports. This is significant,” chairman of the apex body of the engineering exporters, T S Bhasin said.
While total engineering exports for the April-July 2016 period slipped by 5.82 per cent to $20.27 billion from $21.52 billion in the same period last fiscal, the total automobile exports increased by four per cent to $2.78 billion for the period under review.
Even though shipments fell to destinations like Sri Lanka, South Africa and Bangladesh , they continue to remain important destinations for the auto exports accounting for $158 million, $151 million and Bangladesh $102 million respectively, the EEPC India analysis showed.
For the automobile components, the US remained the top destination, followed by Turkey with shipments at $345 million and $116 million. These exports to the US increased by over eight per cent and Turkey by 1.30 per cent. Total global exports of Indian automobile components aggregated to $1.48 billion during April-July 2016, growing by 4.54 per cent on annualized basis.
Automobiles and automobile components form a major part of India’s overall engineering exports and are among the few sectors showing positive trend this fiscal.
A large number of Indian IT and pharmaceutical firms including TCS, Infosys, Wipro, Sun Pharma and Dr Reddy’s Labs have set up their facilities in Mexico for their stronger presence in Latin America, Bhasin added.