Automakers focus on exports to increase sales, reduce inventory

Agencies
December 12, 2019

New Delhi, Dec 12: Even as Indian automobile industry's domestic sales performance continues to decline, increased shipments of BS-IV vehicles at attractive prices along with low base effect lifted auto exports to over 17% in November, the third straight month of rise in overseas shipments on a year-on-year (YoY) basis.

Industry insiders and market watchers predict the trend to continue in the coming months to reduce the BS-IV inventory levels.

As per the data furnished by the Society of Indian Automobile Manufacturers (SIAM), the sector's exports across categories was higher by 17.60% at 411,470 units from 349,893 units shipped abroad in November of 2018.

In October, overall exports had grown by 2.72%.

On the other hand, SIAM data showed the sector's total sales declined by 12.05% to 17,92,415 units in November from 20,38,007 units sold during the corresponding month of the previous year.

At present, the domestic market suffers from an economic slowdown which is a culmination of several factors such as high GST tax rates, stagnant wages and a distressed farm sector.

"Exports have improved in both two-wheeler and passenger vehicle segment reporting positive traction in markets outside India. The two segments have shown growth of almost 20% each," said Sridhar V., Partner, Grant Thornton India LLP.

"This healthy traction in exports is a consequence of some of the OEM focus on turning India into a supply hub for markets other than India and have seen acceptability specifically in Middle East, Africa and SAARC regions. It could also be that many are still in BS-IV equivalent and a push in that market is seeing positive results."

According to Suman Chowdhury, President-ratings at Acuite Ratings and Research: "Many of the OEMs have set up manufacturing plants in India to cater to the demand in South Asian and African nations."

"With the significant slowdown in the domestic demand, the focus on exports has increased further. Hyundai, Nissan and Kia Motors have seen a jump in their PV exports in November though the volumes are still insignificant as compared to the domestic volumes."

Furthermore, the data disclosed that passenger vehicles' overseas sales during the month under review rose by 20.37% to 58,562 units this November, on a year-on-year basis.

In terms of passenger cars, exports edged higher by 13.60% to 39,390 units, while utility vehicle' overseas sales grew by 38.16% to 18,909 units.

Conversely, exports of the key indicator of economic activity -- commercial vehicles -- went down by 29.03% to 5,694 units.

The overseas sales of three-wheelers in November rose by 2.04% to 47,827 units.

In the case of two-wheelers, which include scooters, motorcycles and mopeds, exports stood higher by 21.57% to 299,147 units.

The period from April to November 2019 saw the overall automobile exports grow by 3.28%. During the period passenger vehicles and two wheelers exports grew by 5.36% and 6.50%, respectively.

"The growth in two-wheeler exports can be attributed to demand recovery in some key export destinations in African continent as well as Latin America following some stabilisation of macro-economic challenges," said Shamsher Dewan, Vice President, Corporate Sector Ratings, ICRA.

"Apart from two-wheelers, passenger vehicle exports have also grown by 5.3% during FY2020, supported by OEM specific initiative to leverage on manufacturing capacities available in India."

Besides, Dewan said that India's automobile exports are primarily concentrated on nearby markets and developing countries in Africa, Latin America and southeast Asia.

"Accordingly, it is not a reflection of demand recovery in major automobile markets of China, Western Europe etc," Dewan said.

Nonetheless, Fitch Ratings Associate Director Snehdeep Bohra told IANS: "The trend in November coincides with the fact that OEMs are trying to reduce the BS-IV inventory levels to a manageable limit. In this context they seem to have focused on exports."

"However, with some automakers expecting a stable domestic market from next year onwards this may not represent a sustained shift towards exports."

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 6,2020

Hyderabad, May 6: Away from city lights, two hours before Sunrise, people in India and across the world can witness Annual Meteor Shower called Eta Aquarids till May 28.

Observed since time immemorial, Meteor shower are commonly known as shooting stars which are nothing but dust flakes of comet/asteroid entering earth atmosphere.

This Annual Eta Aquarids Meteor Shower peaked on Wednesday at 02.30 am on Wednesday whereas presence of Full Moon was an obstacle outshining bright streaks of lights of this meteor shower zipping across the South Eastern sky.

As this meteor shower is active till May 28, people can still watch this celestial spectacle in early morning every day, Planetary Society of India (PSI) Director N Sri Raghunandan Kumar interacting with UNI said.

As per International Meteor Organization (IMO), 50 meteors per hour are expected to be seen on day of peak today. And this number would vary as days pass on till May 28 while earth passes through dust cloud of comet debris in its orbit.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
April 17,2020

New Delhi, Apr 17: The Indian Railways turned 167 years old on Thursday and for the first time ever, its trains did not carry any passengers on its birthday and instead stood idle in the yards waiting for the nationwide lockdown to end.

On this day 167 years ago, the wheels of the first passenger train in the country from Mumbai to Thane started rolling.

In 1974, Indians experienced life without trains for the first time. In May 1974 during the strike of the railways that lasted for around three weeks, drivers, station masters, guards, track staff and many others went on 'chakka jam' demanding fixed working hours for train drivers and an across-the-board pay hike.

"I can recall those times vividly. I remember that our leader George Fernandes had almost secured a deal with the then railway minister, but it fell through when it was taken to the then Prime Minister Indira Gandhi," All India Railwaymens Federation General Secretary Shiv Gopal Mishra, who was an apprentice in the railways at that time, told PTI.

"Fernandes was arrested in Lucknow. The workers went through a lot at that time. But those were days that angry workers had refused to give in and took great risks to get their demands met," he said.

However, just like this time, four decades ago too freight trains carrying essential supplies were run and the unions agreed to let some passenger trains run on the trunk routes like the Kalka Mail from Howrah to Delhi.

"Never ever in its history, there has been such a long interruption of services. Not during the World Wars, not during the 1974 railway strike, or any other national calamity or natural disaster," a railway spokesperson said.

The first Indian Railways passenger train was flagged off on April 16, 1853, from Mumbai to nearby Thane.

On Thursday, the Railway Ministry wished the railways a happy birthday on Twitter - "Today, 167 years ago with the zeal of 'never to stop' the wheels of the first passenger train from Mumbai to Thane started rolling. For the first time, passenger services are stopped for your safety. Stay indoors & make the nation victorious," it said.

Railway has suspended all passenger services since March 25 till May 3 due to the coronavirus outbreak. Around 15,523 trains run by the railways have been affected including 9,000 passenger trains and 3,000 mail express services which are run daily. It caters to over 20 million passengers every day.

According to the Union health ministry, the death toll due to coronavirus rose to 414 and the number of cases to 12,380 in the country on Thursday.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 7,2020

Toronto, May 7: Scientists have uncovered how bats can carry the MERS coronavirus without getting sick, shedding light on what triggers coronaviruses, including the one behind the COVID-19 pandemic, to jump to humans.

According to the study, published in the journal Scientific Reports, coronaviruses like the Middle East respiratory syndrome (MERS) virus, and the COVID19-causing SARS-CoV-2 virus, are thought to have originated in bats.

While these viruses can cause serious, and often fatal disease in people, bats seem unharmed, the researchers, including those from the University of Saskatchewan (USask) in Canada, said.

"The bats don't get rid of the virus and yet don't get sick. We wanted to understand why the MERS virus doesn't shut down the bat immune responses as it does in humans," said USask microbiologist Vikram Misra.

In the study, the scientists demonstrated that cells from an insect-eating brown bat can be persistently infected with MERS coronavirus for months, due to important adaptations from both the bat and the virus working together.

"Instead of killing bat cells as the virus does with human cells, the MERS coronavirus enters a long-term relationship with the host, maintained by the bat's unique 'super' immune system," said Misra, one of the study's co-authors.

"SARS-CoV-2 is thought to operate in the same way," he added.

Stresses on bats, such as wet markets, other diseases, and habitat loss, may have a role in coronavirus spilling over to other species, the study noted.

"When a bat experiences stress to their immune system, it disrupts this immune system-virus balance and allows the virus to multiply," Misra said.

The scientists, involved in the study, had earlier developed a potential treatment for MERS-CoV, and are currently working towards a vaccine against COVID-19.

While camels are the known intermediate hosts of MERS-CoV, they said bats are suspected to be the ancestral host.

There is no vaccine for either SARS-CoV-2 or MERS, the researchers noted.

Follow latest updates on the COVID-19 pandemic here

"We see that the MERS coronavirus can very quickly adapt itself to a particular niche, and although we do not completely understand what is going on, this demonstrates how coronaviruses are able to jump from species to species so effortlessly," said USask scientist Darryl Falzarano, who co-led the study.

According to Misra, coronaviruses rapidly adapt to the species they infect, but little is known on the molecular interactions of these viruses with their natural bat hosts.

An earlier study had shown that bat coronaviruses can persist in their natural bat host for at least four months of hibernation.

When exposed to the MERS virus, the researchers said, bat cells adapt, not by producing inflammation-causing proteins that are hallmarks of getting sick, but instead by maintaining a natural antiviral response.

On the contrary, they said this function shuts down in other species, including humans.

The MERS virus, the researchers said, also adapts to the bat host cells by very rapidly mutating one specific gene.

These adaptations, according to the study, result in the virus remaining long-term in the bat, but being rendered harmless until something like a disease, or other stressors, upsets this balance.

In future experiments, the scientists hope to understand how the bat-borne MERS virus adapts to infection and replication in human cells.

"This information may be critical for predicting the next bat virus that will cause a pandemic," Misra said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.