Passenger car shipments from India declined 3.71 per cent to 4,84,602 units in April-February period of this fiscal due to challenges in top export markets like Algeria, Europe and neighbouring countries.
Car makers had shipped 5,03,292 units in the same period of the previous fiscal.
According to industry body SIAM officials, the decline in car exports from India is due to issues in one of the biggest markets Algeria, which has brought in changes in technical regulations.
Moreover, in Sri Lanka Indian car exporters are facing high taxation issues while Europe, the biggest market for compact cars from India, is still recovering from a slump.
During the April-February period this fiscal, biggest exporter Hyundai Motor India Ltd shipped 1,35,267 units as against 1,81,006, down 25.26 per cent.
Maruti Suzuki India exported 1,04,117 units during the period as against 1,02,590 units in the same period of previous fiscal.
Japanese car maker Nissan shipped out 1,01,730 units during the period as against 1,08,980 units in the same period of previous fiscal.
Volkswagen saw its overseas shipments rise to 68,224 units during the April-February period, as against 60,706 units during the year-ago period.
Exports of passenger vehicles, including vans, utility vehicles and cars, however rose 3.14 per cent to 5,91,878 units in April-February, from 5,73,842 units a year earlier.
Last fiscal, passenger car exports from India had declined 1.66 per cent to 5,42,082 units due to challenges in traditional overseas markets like Europe, Sri Lanka and Algeria.
In 2014-15, Indian companies exported passenger vehicles (PVs) worth USD 293 million to Algeria. Besides, PVs worth USD 158 million were exported to Sri Lanka. UK shipments accounted for USD 335 million.
In the domestic market, car sales declined for a second straight month, posting 4.21 per cent dip in February, as Jat quota stir, inventory adjustment by some firms and postponed purchases in expectations of a price cut after the Budget affected demand.
According to the data released by the SIAM, domestic passenger car sales stood at 1,64,469 units in February as against 1,71,703 units in the same month last year.