Big jump in India’s export of goods transportation vehicles: Piyush Goyal

0
0
Advertisement

As the auto industry slowly recuperates in this post-Covid era, the commercial vehicles segment is showing signs of recovery as well. Another factor that has been a point of pain for the industry is the semi-conductor shortage which further affected the growth in recent times. However, with reports of the shortage tapering off we can now see hope and the commercial vehicles industry also seems to be showing early signs of normalising and steady growth.
Minister of Commerce & Industry, Piyush Goyal on September 20, tweeted saying, “Motor vehicles used for goods transport, witnesses a surge! 327% growth in April-July 2022 over the same period in 2013-14.” Goyal was referring to a substantial spike in India’s export of goods transport vehicles that reported earnings of Rs 4,414 crore in April-July 2022. A 327% growth when compared to April-July 2013-14’s, Rs 1,034 crore earnings based on provisional data.

Recent data shared by Society of Indian Automobile Manufacturers (SIAM) also substantiates claims of recovery as it reports that while 23,266 small goods carriers (up to 1 tonne capacity) were sold domestically in April-August 2021, this number jumped to 35,020 in the same period in FY 2022-23. However, overall exports of such small good carriers in same period have fallen down to 1,842 units from earlier year’s 4,156 units.

Advertisment

23,266 small goods carriers (up to 1 tonne capacity) were sold domestically in April-August 2021

23,266 small goods carriers (up to 1 tonne capacity) were sold domestically in April-August 2021

When compared to the total of 614,961 commercial vehicles sold domestically in 2013-14, the upward trend seems to carry on as SIAM reports that 716,566 commercial vehicles have been sold in FY21-22. Such signs of recovery come as a relief for both manufacturers, dealers and consumers after a long period of stunted growth.

(L-R) Nitin Gadkari, Minister of Road Transport and Highways - Narendra Modi, Prime Minister of India - Piyush Goyal, Minister of Commerce & Industryat the launch of National Logistics Policy

(L-R) Nitin Gadkari, Minister of Road Transport and Highways – Narendra Modi, Prime Minister of India – Piyush Goyal, Minister of Commerce & Industryat the launch of National Logistics Policy

The commercial vehicles segment is likely to get a further boost from the recently launched National Logistics Policy (NLP) by Prime Minister Narendra Modi. The policy will promote seamless movement of goods across the country and accelerate growth. A growth in the logistics sector will also mean better sales of commercial vehicles. The emphasis is on bringing down the country’s logistics cost from its current levels of 13-14 percent of the national GDP, to below 10 percent by the end of 2022. Overall, the Indian logistics sector is valued at over USD 200 billion and is very complex.

Advertisment

LEAVE A REPLY

Please enter your comment!
Please enter your name here