MONTHLY REPORTMAY 2021

AUTOMOTIVELOGISTICS UPDATE

PORT ANALYSIS 3

MARKET OVERVIEW AND TRENDS 5

KEY HIGHLIGHTS 6

Disclaimer,

The information contained in this market update is drawn from wide range of newspapers, business and trade magazines, government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected to make their own independent evaluation and verification of information for their use. While all information contained in this report are believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the quotes or other data and the same is provided only in good faith.

TABLE OF CONTENT

PORT ANALYSIS

3

CAR CARRIER VESSELS CALLING INDIAN PORTS (NO OF UNITS)Port Name Apr- March 2020-21 Apr- March 2019-20 Variance

CHENNAI 136171 160385 -24214

ENNORE 86179 159569 -73390

KOLKATA 0 147 -147

MORMUGAO 0 2 -2

MUMBAI 114839 218819 -103980

MUNDRA 60698 67354 -6656

PIPAVAV 10870 39088 -28218

COUNTRY-WISE VEHICLE EXPORTS FROM INDIA (NO. OF UNITS) (APRIL 2021)

MAJOR EXPORTERS OF VEHICLES (UNITS NOS.) (APRIL 2021)

4

COUNTRY (No. of Units)

BRUNEI 10

COTE DIVOIRE 10

KENYA 207

MOZAMBIQUE 25

NEW ZEALAND 69

SINGAPORE 1900

SOUTH AFRICA 616

SRI LANKA 16804

TANZANIA 157

TUNISIA 94

FORD INDIA LTD. 519

HONDA MOTORS LTD. 945

HYUNDAI MOTORS CO. 13800

MAHINDRA AND MAHINDRA LTD. 72

MARUTI SUZUKI INDIA LTD. 4012

TATA MOTORS LTD. 402

VARIOUS SHIPPERS 1000

VOLKSWAGAN INDIA PVT. LTD. 104

KEY HIGHLIGHTS India topped 2020 vehicle imports into South Africa despite Covid-19 impact

Auto sales fall 30 per cent in April as lockdown across states hits demand

COVID-19 hits passenger vehicle exports; shipments tumble 39 % in FY21

Hyundai tops chart of car exporters from India in FY21

MARKET OVERVIEW

AND TRENDS

5

KEY HIGHLIGHTS

India topped 2020 vehicle imports into South Africa despite Covid-19 impact

» India was the top country of origin for vehicle imports into South Africa despite the lengthy Covid lockdowns and overall declines in vehicle sales in 2020, according to the latest 2021 auto report.

India was the top country of origin for vehicle imports into South Africa despite the lengthy COVID-19 lockdowns and overall declines in vehicle sales in 2020, according to the latest 2021 auto report. The Automotive Export Manual report released here on Friday by the Automotive Industry Export Council said that India has been established by several global brands as a production hub for entry-level and small vehicles, and most of the vehicles imported from India fell into these categories. Volkswagen’s Polo Vivo was the only vehicle in these segments that was manufactured locally in South Africa in 2020. The 87,953 units imported from India accounted for 43.2 per cent of total passenger cars and light commercial vehicles imported by South Africa. Nine of the top 10 selling vehicles in 2020 were South African-built passenger cars and light commercial vehicles. An interesting phenomenon is that South African motorists are more inclined to rather drive bakkies (pickups), which have both commercial and leisure vehicle applications, than passenger cars. This was good news for Rajesh Gupta, CEO of Mahindra SA, the local subsidiary of the Indian automotive manufacturer. The Mahindra Pik Up has been the fastest growing range of bakkies in the past three years. There is a strong and growing bond between India and South Africa. Not only is trade between the two countries strong, but South Africa is a perfect springboard

6

for Indian products into the rest of the continent. This is especially true for our range of Pik Up models, which is assembled locally and exported to countries in the Southern African Development Community, Gupta told PTI. Due to the Covid-19 pandemic, South African vehicle exports declined by a massive 115,804 units to 271,288 units in 2020, from the record 387,092 vehicles exported in 2019, with the export value declining by R26.8 billion from the R148.0 billion in 2019 to R121.2 billion in 2020. Despite this, the report remained optimistic about the automotive industry for the current year, dependent on the actions of governments in response to the pandemic as well as the vaccine and how it is rolled out.

Source: Business Standard

Auto sales fall 30 per cent in April as lockdown across states hits demand

» Partial lockdown in several parts of the country has hit automobile sales during April as factories and showrooms remained shut while those open wore a deserted look.

Partial lockdown in several parts of the country has hit automobile sales during April as factories and showrooms remained shut while those open wore a deserted look. According to data released by Society of Indian Automobile Manufacturer (SIAM), automobile shipment from factories to showrooms fell 30.18 per cent to 2,70,458 units, while exports from India increased 19.22 per cent to 5,20,289 units. Production, meanwhile, fell 21 per cent month-on-month in April to 18,75,698 units due to voluntary shutdown of factories and muted demand, showed SIAM data released on Thursday. “Supply chain-related production challenges continue with the lockdown restrictions in many parts of the country.The demand has been clearly impacted by the second wave of Covid-19, both in terms of low consumer sentiments and closure of dealerships due to lockdown restrictions,” said Rajesh Menon, Director General, SIAM. Domestic wholesales of passenger vehicles during the month fell over 10 per cent to 2,61,633 units even as exports grew by nearly five per cent to 42,025 units. Industry observers say that automobile production will witness a much bigger fall in May as market leaders Maruti Suzuki and Hero MotorCorp have extended their shutdowns till the end of this week. Other manufacturers have also announced closing their factories for as many as 15 days in May. Similarly, two-wheeler wholesale in India fell 22.82 to 15,05,653 units while its export grew by 21.10 per cent to 4,31,311 units. As the domestic market continues to face growth challenges, many automakers are eyeing foreign markets to reduce their local dependency. For example, Bajaj Auto in April clocked worldwide sales of 348,173 units of which 221,603 units – or 63 per cent – were exported. Analysts, meanwhile, have pinned their hopes on faster inoculation to lift economic activity. “Recovery in domestic wholesales can be expected Q2-FY22 onwards, contingent to a faster vaccination drive and no new waves of Covid-19,” said analysts at Care Ratings.

Source: New India Express

COVID-19 hits passenger vehicle exports; shipments tumble 39 % in FY21

» Industry tried its best to catch up in the second half of the fiscal.

Passenger vehicle exports from India declined by 39 % in the last fiscal as disruptions caused by COVID-19 pandemic put brakes on the overseas shipments. Most of the damage was done in the first six months of the last fiscal when pandemic-led lockdowns and other logistics, supply chain issues impacted the export of vehicles. Industry tried its best to catch up in the second half of the fiscal when things became relatively better but could not match up to the FY20 performance. According to the SIAM data, passenger vehicle (PV) exports declined by 38.92 % in 2020-21 to 4,04,400 units from 6,62,118 vehicles in 2019-20. Passenger car dispatches

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declined by 44.32 % to 2,64,927 units last fiscal compared to 4,75,801 units in FY20. Similarly, utility vehicle exports witnessed a 24.88 % decline last fiscal compared to 1,83,468 units in 2019-20. Overseas shipments of vans saw a steep 42.16 % fall during the last fiscal to 1,648 units from 2,849 units in 2019-20. “While the exports of passenger vehicles had dropped by a whopping 58 % in the first half of FY21 due to the pandemic and resultant lockdowns, marginal improvement due to multitude of efforts by the OEMs in the second half of FY21 led to the year closing with an overall decline in exports of passenger vehicles by 39 %,” SIAM Director General Rajesh Menon told PTI. Most of the major PV exporters saw a significant drop in their overseas shipments in the last fiscal. The country’s leading exporter Hyundai Motor India shipped 1,04,342 units in 2020-21 fiscal, down 38.57 % compared to the previous fiscal. Maruti Suzuki India exported 94,938 units, down 5.34 % from the year-ago period. Ford India shipped 46,064 units to overseas markets during the period under review, down 64.96 % from FY20. Nissan Motor India exported 32,390 units last fiscal, down 59.25 % from 2019-20 fiscal. Volkswagen India exported 31,089 units during the period under review, down 44.1 % from 2019-20. Besides, General Motors India exported 28,619 units, down 47.84 % from the same period last year. Kia Motors India and Honda Cars India however witnessed an increase in overseas shipments last fiscal. Kia exported 40,440 units during the period, an increase of 88.43 % over 2019-20. Similarly, Honda Cars shipped 5,151 units in 2020-21 up 37.54 % over 2019-20.

Source: The Hindu

Hyundai tops chart of car exporters from India in FY21

» According to the Society of Indian Automobile Manufacturers (Siam) data, Maruti Suzuki India came second with exports of 94,938 passenger vehicles, followed by Ford India Motors with 46,064 units and KIA.

Hyundai Motor India (HMIL), the wholly-owned subsidiary of South Korean-based Hyundai Motor Company (HMC), on Friday claimed that it had exported 1,04, 342 units of passenger vehicles from India between April 2020 and March 2021, continuing its journey as the Number One automobile brand to export from the country.Hyundai also became the leading exporter of SUVs, with over 2 lakh units of Creta and Venue having shipped to overseas markets, including Mexico, Saudi Arabia, South Africa, Nepal and Chile. Further, the new i20 that has been well accepted in India and around the global, is being exported to all key markets across Africa and Latin America region, HMIL said. SS Kim, MD & CEO of HMIL, said, “Despite numerous challenges emerging out of the global pandemic, uncertainty in various markets, restriction on imports and disruption in supply-chain, HMIL has continued to drive operational excellence to ensure customer satisfaction. An export of 1, 04 342 units in FY 20-21 stands testament to our indomitable spirit. It is a moment of great pride for Hyundai as we step forward in the journey of making world class quality cars from India. Our smart manufacturing processes have led us to maintain our leadership position in passenger vehicle exports and strengthened our commitment to Make in India for the World.” HMIL also commenced car exports to Nepal through railways from Walajabad Railway Hub near Irungattukkottai near Chennai. As the country’s largest exporter of automobiles, Hyundai also surpassed the 30- lakh vehicle export milestone earlier in 2020, exporting to 88 countries. Hyundai India had recorded multiple export milestones over the years -5 lakh exports in March 2008, 10 lakh exports in February 2010, 20 lakh exports in March 2014 and 30 lakh exports in January 2020 – the company said. According to the Society of Indian Automobile Manufacturers (Siam) data, Maruti Suzuki India came second with exports of 94,938 passenger vehicles, followed by Ford India Motors with 46,064 units and KIA Motors, which exported 40,440 units of vehicles in FY21. Nissan Motors with 32,390 units, Volkswagen India with 31,089 units and General Motors India with 28,619 units followed the top exporters, in the chart. The Siam data, however, showed that as compared to FY20 figures, the FY21 exports have declined for almost all the car manufacturers except for KIA Motors, which recorded 88.43% growth. Hyundai’s exports have dropped by 38.57%, Maruti Suzuki’s by 5.34%, Ford India’s by 64.96%, Nissan India’s by 59.25%, Volkswagen India’s by 44.10% and General Motors India’s by 47.84%. The cumulative exports of passenger vehicles stood at 4.1 lakh units in FY21 as compared to 6.6 lakh units a year ago, falling by 38.92%, according to Siam. CARE Ratings, in a note, said exports suffered due to closure of international borders and many nations restricting their imports to essential items.

Source: Financial Express

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