Mexico has emerged as the top destination for India’s automobile exports, making a compelling case for Indian engineering exporters for a further push forward in the growing South American markets, according to 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 the UK at $130 million.
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 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,” the Chairman of the apex body of the engineering exporters, Mr. T.S. Bhasin, remarked.
For automobile components, the US remained the top destination, followed by Turkey with shipments of $345 million and $116 million respectively. 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 auto components form a major part of India’s overall engineering exports and are among the few sectors showing positive trend this fiscal.