Kolkata, March 16 (IANS) Rising demand for the last mile connectivity in emerging markets of Africa and southeast Asia fuelled India’s three-wheeler (3W) exports growth, according to a report released by ICRA.
India’s three-wheeler exports grew at a compound annual growth rate (CAGR) of 20 percent over the past decade with export sales of over 4.1 lakh units in 2014-15, Investment Information and Credit Rating Agency report said.
In respect to growing trend of three-wheeler exports, the report attributes strong demand from international markets on back of rising demand for last-mile connectivity owing to lack of well developed public transport system in emerging markets in Africa and southeast Asia.
“As per industry estimates, while countries such as Sri Lanka, Bangladesh followed by Middle East and Africa account for majority (90 percent) of exports from India,” the study said.
Indian original equipment manufacturers have also ventured into the relatively developed markets in the Asean and Latin American region over the past few years.
India also positioned itself as the largest manufacturer for three-wheelers globally.
Over the past decade from fiscal year 2006-15), the Indian three-wheeler industry witnessed a CAGR of 8.9 percent in unit sales driven by steadily rising exports as well as domestic demand, it said.