Near to 38 Lakh cars were manufactured in India in the previous Financial Year (Apr’16-Mar’17). And out of this, over Seven and half lakh cars were exported to different parts of the world. This means that over 20% of the production output is utilized in Exports – and hence the tag of ‘Global Manufacturing Hub’ holds true to India. Just to highlight the scale of Exports from India (>7.5 lakh units) – India exported more cars than the passenger car sales in countries like Argentina* (>6.9 lakh units), Belgium* (>6 lakh units), South Africa* (>5.3 lakh units), etc. The export numbers grew over 16% in FY17 when compared FY16. It was fueled by exponential increase in exports by OEMs such as Ford, GM, Renault & Mahindra. Let us look at the OEM-wise export volumes –
Similar to Domestic sales; the exports was dominated by the Top 3 players and they together contribute ~60% of the export volumes.
However, Hyundai is undoubtedly the No.1 Exporter of Cars in India. It has consistently utilized India to cater markets like Europe, Middle East and Africa. Just to highlight the reach of its export base – made in India Creta is currently being exported to 92 countries across the world!
Ford India is at the tail of Hyundai and with the current pace is all set to dethrone Hyundai as sub-continent’s biggest exporter! Ford export numbers grew to 43% in comparison to last year and is just 5k units short than that of Hyundai’s. Interestingly, the company’s exports were much more than what it sold in the domestic market – 91,405 units.
Maruti seems to be concentrating on the Domestic Market and the exports haven’t grown as expected. Though the models which made their global debut in India (such as Baleno) is being exported to other markets, the overall export numbers have not been quite significant. In FY17, Maruti’s export numbers was 1,22,039 units in comparison to Domestic Sales of 14,43,641 units.
GM has made commendable inroads in terms of Exports and is currently country’s 6th Biggest exporter. The focus of the American manufacturer has come in tough times where it finding immensely difficult to utilize its production prowess to cater to the local market. GM India currently exports the left hand drive Beat to countries including Mexico, Chile, Peru, Central American and Caribbean Countries (CAC), Uruguay and Argentina.
Exports from India have grew at at YoY pace of >16% when compared to YoY Domestic Sales Growth of >9%. It clearly signifies that the Made-in-India products are now able to clear global standards and our manufacturing prowess will be a boost to the sector. No wonder Global Products Design & Engineering is currently happening in India and more world-class products will be launched in the domestic market in coming future. This is indeed a positive sign for the Industry and we expect the export volumes to cross 10 Lakh units per annum within next 2 years!
*Domestic Sales for Calendar Year 2016 (Jan-Dec)