Auto exports plunge 73% in May amid supply-chain issues due to lockdown: EEPC India

The Engineering Exports Promotion Council (EEPC) India in its latest report has said that the auto exports plunged 73% in May 2020 to $230.3 million (about Rs 1,736 crore) as compared to the year-ago period with shipments to key markets like the US and Mexico registering a sharp decline owing to supply-chain issues due to lockdown. It said the exports of auto components too suffered a major setback during the month with important markets including the US, Mexico, Germany, and Japan reporting de-growth in the range of 34-68%.

It said Covid-19 public health crisis has taken a massive toll on exports of India's automobiles in May 2020 with as much annualised erosion as 98% and 65% in shipments to key markets like the US and Mexico, respectively. The exports to the US last month in value terms stood at a mere $1.37 million as against $79.82 million in the same month last year while shipments to Mexico dropped to $42.50 million from $122.98 million. In April-May period of the ongoing financial year, the exports dropped by 83% to $281.1 million from $1,632.7 million in the year ago period.

The council said the total export of auto components and parts recorded 65.5% decline at $163.2 million during May 2020 from $473.6 million exports in the same month last year, it said. In April-May period, the export plunged 77.8% to $196.3 million from $885.6 million in the same period of the previous fiscal. However, the US remained the top importer of auto components in April-May 2020 with a share of 22.33 per cent followed by Turkey, Germany, Japan and Mexico with a share of 8.30%, 6.89%, 4.34% and 3.79%, respectively.