New Delhi, Apr 13 (KNN) India's automobile exports remained under considerable stress during the last financial year due to multiple geopolitical conflicts and currency issues in key markets, according to Vinod Aggarwal, President, Society of Indian Automobile Manufacturers (SIAM).

Aggarwal cited the ongoing Russia-Ukraine war and Israel-Gaza conflicts as major factors hampering Indian auto exports, reported ETAuto.

He also noted that some countries where India has a strong presence in commercial vehicle and two-wheeler exports are grappling with foreign exchange crises.

"The decline is owing to the ongoing geopolitical issues including the Russia-Ukraine and Israel-Gaza conflicts, and some countries where we are very strong in two-wheeler and commercial vehicle exports are facing foreign exchange (forex) issues," Aggarwal stated.

However, the SIAM president expressed optimism for the current fiscal year, pointing to a recovery in exports during the January-March quarter, especially for two-wheelers. "We are hopeful that the situation will improve," he added.

India's major auto export destinations include Latin America, Southeast Asia, Africa, and the Middle East, with some passenger vehicle makers also shipping to Europe and other developed markets.

Addressing the impact of the Red Sea crisis, Aggarwal said the issue has been resolved as automakers have switched to alternative longer routes, avoiding the Red Sea region.

He explained that depending on the destination, the alternate route between Europe and Asia through the Cape of Good Hope takes up to 10 weeks compared to the earlier 8-week journey through the Red Sea.

"Owing to this, the lead time has gone up, and the cost would also have gone up a little bit. With that, the situation has been resolved," Aggarwal clarified.

(KNN Bureau)