Two wheelers race ahead in export market

New Delhi, June 25 (UNI) The export market for the country's two wheelers is growing at the fastest rate of 40 per cent among different segments of the automobile industry.

The growth rate of exports in the other segments - commercial vehicles at 35.5 per cent, three wheelers at 15.1 per cent and passenger vehicles at 5.6 per cent.

The auto industry which has universally emerged as an important driver of the economy, contributes about five per cent to the GDP in India and 17 per cent to the indirect tax collection.

Sri Lanka constitutes the largest export destination for Indian two wheelers, three wheelers and passenger vehicles, says a report of the Society of Indian Automobile Manufacturers.

The report also says that between 2000 and 2004 period, the entire automobile industry grew in terms of sales by 59 per cent, while the current domestic sales of the three wheelers is growing at the rate of 17 per cent, two wheelers at 13.6 per cent, commercial vehicles at 10.1 per cent and passenger vehicles at 7.7 per cent.

''Factors like GDP growth, cheaper and easier finance, rapid replacement of aging vehicles, increasing road development, increasing disposable income of rural agriculture sector have fueled the domestic demand for automobiles,'' the report said.

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