THE EXPORT DYNAMICS - PART 1

HEADWINDS HAVE CHALLENGED THE EXPORT PROSPECTS. ASHISH BHATIA LOOKS AT THE LIMITATIONS AND OPPORTUNITIES FOR THE CV INDUSTRY IN THIS MULTIPART SERIES.

- ASHISH BHATIA

The export aspirations have been significantly hindered by unprecedented and peculiar circumstances. From geopolitical trade uncertainties, to supply chain bottlenecks, to recessionary trends and demand slump threatening consumption. If the Russia-Ukraine crisis wasn’t hard enough on trade, the Israel-Gaza crisis has worsened matters. The recent diversion of shipping traffic in the Red Sea after the Suez Canal fiasco is being watched closely and is expected to drive up costs by ~25-30 per cent. India is watching the developments closely and continues its long-term efforts to reduce logistics costs by approximately four per cent of the GDP. The on-highway and off-highway segments with their advances and adherence to new compliances in the shift to green mobility have kept the prospects alive. A substantial revenue can be generated on the back of localised, globally bench marked products cutting through the competition in the plus one era of strategy. Near term complexities weighing down on the industry include the destruction trail in Southern India. First cyclone Michaung and then heavy rain battering southern districts of Tirunelveli, Thoothukudi, Tenkasi and Kanyakumari resuling in severe inundation in the automotive hub. Covid-19 refuses to die down and is expected to play out on business in the coming days. From breakouts in Singapore to touchdowns in Kerala, Uttar Pradesh and Goa as WHO studies the new ‘Variant of Interest’ not concern’.

H1-FY24: A SNAPSHOT OF EXPORTS