The Society of Indian Automobile Manufacturers (SIAM) today said the country is likely to miss the export target for passenger vehicles, mainly on account of a slump in demand for small cars in Europe.
"Earlier we had set export target of 5 lakh units of passenger vehicles this fiscal, but it is unlikely that we will meet it," SIAM Senior Director Sugato Sen said.
At the most, passenger vehicle exports by the end of the fiscal could be between 4 lakh and 4.5 lakh units, he added.
So far this fiscal, total passenger vehicle (Utility and Multipurpose Vehicles) exports from India stood at 3,58,538 units in the April-January period, as against 3,69,180 units in the same period last fiscal, down 2.87%.
"This is mainly because the European market, the biggest market for Indian small car makers, has not recovered from the slump," Sen said.
When the 2008-09 slowdown hit global economy, many European countries had provided incentives on purchase of new cars in exchange for old ones to boost the automotive sector. However, the sops have ended although the market in the continent is yet to return to a healthy state.
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Hyundai Motor India and Maruti Suzuki India are the main exporters from India with the majority of their exported small cars being sold in Europe.
During the April-January period this fiscal, passenger car exports were down 3.34% to 3,53,533 units as against 3,65,731 units in the same period last fiscal.
Utility vehicle export during the period, however, jumped 50.24% to 3,167 units as against 2,108 units in the same period last fiscal.
Export of multi-purpose vehicles also climbed 40.41% to 1,883 units so far this fiscal as compared to 1,341 units in the comparable period last fiscal.