Indian passenger car production fell by 8.4% in the first half of 2019
- Indian passenger car production fell by 8.4% in the first half of 2019 to 1.94 million units, compared with a steady increase since 2014. In 2018, it had increased by a further 1.7% (to 4.08 million units) compared to 9.5% in 2017 (to 4.01 million units). A slowdown was therefore noticeable already last year.
- In fact, the growth in production volume in India went into negative territory as early as November 2018 (see graph below). Since then, this growth has continued to be negative, except in January 2019, which was slightly positive. The production volume for the whole of 2019 will therefore be well below 4 million units.
- The future remains problematic because world markets are on a downward trend, even if the Indian market imports only a very small quantity of cars, due to very high taxes reserved for imported cars.
- Exports account for about 17% of India's production of passenger cars. These vehicles are mainly exported to ASEAN countries by six manufacturers: Ford, Hyundai, Suzuki, GM, Nissan and VW. ASEAN countries are increasingly imposing import restrictions, favouring locally produced or assembled vehicles. In addition, in some markets, such as Sri Lanka, the growth of the second-hand market competes with the sale of new vehicles imported from India.
- In the first six months of 2019, Indian automotive exports did not exceed 339,000 units (PC ) compared to 357,000 in the same period of 2018, a decrease of 5.0%.
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