Export data for April and May 2017 reveals that demand for made-in-India passenger vehicles is growing at a good pace and should notch a new high in FY2018.
16 Jun 2017 | 6667 Views | By Autocar Professional Bureau
The passenger vehicle (PV) industry in India, which notched a new high in FY2017 both in domestic sales and exports, seems to be well set and driving towards a record-setting sales year in FY2018. For the first two months of the new fiscal (April-May 2017), domestic sales at 529,259 units ...
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The passenger vehicle (PV) industry in India, which notched a new high in FY2017 both in domestic sales and exports, seems to be well set and driving towards a record-setting sales year in FY2018. For the first two months of the new fiscal (April-May 2017), domestic sales at 529,259 units are up 11.73 percent year on year. Exports too, at 125,394 units, are up 19.24 percent YoY.
While the domestic growth story continues, made-in-India exports are becoming a driving force for most automakers in India, across the PV, two-wheeler and commercial vehicle segments. At present, in the PV segment, Ford India is the leading exporter with shipments of 34,292 units (+59.96%), thanks to growing demand from overseas markets for the made-in-Chennai new Figo, which is sold as the Ka+ in the UK and Europe. Exports of the new Indian-made Figo first started in July 2016.
At No. 2 is Hyundai Motor India is 26,841 units (+12.43%). The company export portfolio includes the Eon, Grand i10, Xcent, Elite i20, i20 Active hatchbacks and the Creta SUV. Of these the new Grand i10, Creta and Xcent see considerable export demand. Its key global markets are Latin America (Mexico, Chile, Peru, Panama), Africa & Middle East (South Africa, Algeria, Tunisia) and Asia Pacific (Philippines, Nepal).
At third place is Volkswagen India with 18,143 units (23.56%). The German carmaker is bullish on its made-in-India export strategy and has been shipping cars from its Pune plant to over 35 countries to Asia, Africa, North America and South America. Mexico continues to be its biggest export market, contributing over 80 percent of its overseas volumes. The range of cars being exported includes left-hand drive as well as right-hand drive Polo and Vento cars.
At No. 4 is GM India, which last month decided to exit domestic market operations and focus solely on exports, will be depending solely on vehicle shipments from India to justify its manufacturing operations at the Talegaon plant. Between April-May 2017, the company exported 15,964 units (+121%) with the left-hand-drive Chevrolet Beat, which is sold as the Spark in many countries globally, being despatched to Mexico, Chile, Peru, Central American and Caribbean countries, Uruguay and Argentina.
Fifth-placed on the top exporters list is Maruti Suzuki India with 12,862 units (-33.35%). India’s largest and most successful carmaker, which is notching handsome gains in the domestic market. However, as a result of having to meet surging domestic market demand – mainly for the Baleno and Vitara Brezza – the company seems to be going slow on its exports.
Nissan Motor India, whose exports have slowed down due to the new Micra being made at partner Renault’s Flins plant in France, is at No. 6 in the export list with 10,610 (-19.01%). Around 132,000 Nissan Micras will be rolling off the production lines at the Renault Flins facility this year.
PV exports are also helping sustain the India drive global automakers like Ford, Nissan, Volkswagen and GM, all of whom have more export numbers to their credit than their domestic sales and ensuring that their plants are buzzing with manufacturing activity. What’s helping automakers in India is the abundance of a skilled labour force, low cost of manufacturing compared to global markets and upskilling of the supply chain that can now meet international quality standards. Also, as India enters into more Free Trade Agreements with global powers, additional new markets are set to be opened up that will offer a vista of new opportunities for the passenger vehicle industry.