Date: |
01-07-2015
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Subject: |
Export more, sell less: Story of Nissan, Ford and Volkswagen in India
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With the Indian Automobile market going through a lull since the past 12 months, three companies have managed to export more cars than their domestic sales.
Hyundai exports the most number of cars from its Indian production arm. At 191,000 units, the company is at the top in terms of export. Maruti Suzuki is second with 122,000 units, but these two companies have domestic sales much higher than their export.
SIAM (Society of Indian Automobile Manufacturers) revealed that Nissan exported more than 70% out of 167,000 cars it produced in India last year. Its domestic sales stand at 47,000, and more than 25% of these are its mini-SUV Terrano. Ford exports 52% of the 157,000 cars it produces in India and Volkswagen exports nearly 60%. The latter has the lowest domestic sales and overall production in India among the three with 110,000 units produced in the year 2014-15 and just 45,000 sold in the domestic market.
Manufacturers earn booming profits by exporting from their Indian facilities because it comparatively costs them less to produce a single unit here. Cheap labour and extensive availability of parts from numerous suppliers make it easy for them to get more bangs for the buck. The worst performer in terms of exports among bigwigs of automakers is Tata Motors. Last year, it produced 166,000 units out of which only 4,000 were exported.
India has exported nearly 20% of the passenger cars it produced during the financial year 2014-15. Automotive experts are not surprised by the numbers because domestic sales have been on a decline since a long time. Volkswagen was able to export 56,000 units of its Vento while Nissan managed to ship 76,000 units of Micra overseas. These are big numbers and it seems like India has become a hub of International manufacturers looking to set up a production plant not only for domestic sales but exports as well.
Source:cartrade.com