Sunday, September 8, 2013

Indian Export Market - Automobiles

Indian Automobile Export Market - A look at the biggest Automobile Exporters in India


PREFACE: The ranking has been done based on the basis of percentage contribution of Export to the overall volumes. The background for considering the % contribution and not directly export volumes is to measure the OEM's dependency on Exports and hence the focus of these OEMs on the same. Surprisingly, a lot of OEM's have garnered higher volumes in Exports compared to Domestic Sales and the intention of making India as a Manufacturing & Export Hub is quiet evident from that. Also the OEMs having higher Export focus are based at locations near to ports giving it the required accessibility. The Domestic Sales / Export volume is from April to July 2013 (Quarter 1 of FY14).   

India has gained importance by global automakers not only as a growing market, but also a strategic location to export its products. "Made in India" vehicles have found global acceptance because of its value engineering, localization and its central location. Carlos Ghosn was once found commenting on the issue - "If we get a product right in India then the product is ready to be accepted elsewhere.. in growing markets". The cost of making a car in India is 15-20% lower than any developed / even developing markets. India made products are also rebadged for various international markets. Now, strong export lineup is also considered as an advantage to offset the depreciating rupee!  

Passenger Cars –

·         Nissan emerges as the OEM with the highest dependency on Export. No wonder the OEM is undeterred with its poor performance in the Indian market, as it has been able to successfully expand its Export portfolio - kindly note that Micra is made ONLY in India for global markets. Also Sunny contributes significantly to the OEM. In the coming times, Datsun brand would also be based in India and would be exported to various countries - Do remember that Datsun's world premiere was done in India and for a reason!   

Source: ET
·         Hyundai has always set benchmarks in Exports - It is the country's largest car exporter and in 2010 touched the milestone of exporting over 10 Lakh cars! No wonder, "Made in India" Hyundai cars is being exported to over 120 countries! Also over 50% of its production is being exported.
Source: Business Line
·         Ford also has recently re-aligned its strategy to accelerate the export volumes to adapt to the changing Indian market conditions and strong global demand for compact cars and SUVs. With addition of Ecosport in its portfolio, not only making it a success in India - but also exporting the model to various other developing countries is also its part of the strategy. Ford is also looking at integrating India with its global manufacturing network as part of its "One Ford" strategy. 

·         VW India has been exporting cars since Pune last year as fully built units to markets such as South Africa, Srilanka, Nepal, Bangladesh, Malaysia and LHD version of the Vento to West Asia.

·         Who can forget Toyota's big plans to the Indian made Etios / Liva for the global markets. The OEM currently exports to Indonesia & South Africa. The India-made Etios though didn't perform as it was expected in India - but is the 4th best selling car in South Africa!

·         Renault India exports the Duster to RHD markets - UK and Ireland. 

·         Maruti - is aiming to overtake Hyundai in exports. By 2020, Maruti is planning to invest Rs. 18,000 crore in new factories to support its expansion and export strategy. 

Despite current market challenges and macroeconomic factors, Export is the strategy being used by various OEMs to shield itself from the economic slowdown. 

A look at the India made products which are the best-sellers in international markets -
Source: HT
A glance at the Export volumes in Commercial Vehicles, Two & Three Wheelers –


*Force Motors volumes have been considered separately as its domestic numbers are nil.

12 comments:

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Anuraj said...

I congratulate the writer of this article,he has given very useful & interesting scenario of automobile expors from India. It helps us to know that Indian made cas are running thru out the globe.That is a strong evidence of "made in India" brand picking up that makes us feel proud.

Arvind Phatak said...

Wow.. well thought and well presented article. Thanks for taking the pains to develop such a valuable information.

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