Global Auto Cos in India Ride on Exports
Exports help auto giants attain profitability amid slowdown in the Indian market, even as Japan’s Datsun plans global premiere of its small car redi-GO in India and bike maker Yamaha plans to make more than 1 m units here Nissan, Ford, Volkswagen and Gene
timesinternet.in New Delhi: The Indian market hasn’t been too kind to auto makers, but a few of them have found a way to keep their operations sustainable. Exports.
In the fiscal year ended March 31, the Indian units of four passenger vehicle manufacturers — Nissan Motor, Ford Motor, Volkswagen and General Motors — exported more cars and utility vehicles than what they sold in the local market.
Overall, exports of passenger vehicles from India grew 5.2% in the last fiscal year to 6,53,889 units. Exports, especially for these companies, help them better utilise capacity and attain profitability even as domestic sales remain sluggish.
Exports grew the fastest at General Motors, as the local unit of the American auto giant shipped more than 37,000 units from India to overseas markets from April 2015 through March 2016, a 17-fold jump from the year before. The Beat hatchback is the only model yet that GM exports from India. It sold 32,540 vehicles in India in the past fiscal year.
Unit wise, the biggest of the four is Japanese auto-maker Nissan, with about 1.12 lakh units exported. But the volume was 7.2% lower than in fiscal 2015. Overall, Nissan is the third highest exporter from India, behind Hyundai motors and Maruti Suzuki.
The fall in exports at Nissan is in line with what its India president, Guillame Sicard, said in May 2015. “The vision is to aim for at least a 5% market share in India. The priority will always be domestic market,” he had said.
Ford India is one of the leading exporters from India, positioned just behind Nissan. It also shipped nearly 1.11 lakh units, or about 36% more than the year before, to foreign markets. At 83,325 units, the biggest chunk of the exports was of the EcoSport compact SUV. The Figo hatchback and the Figo Aspire compact sedan were the other models exported. German automaker Volkswagen, which faced one of the hardest years globally because of the defeat device scandal, posted a nearly 9% drop in local sales in fiscal 2015-2016. But its exports grew 17% from the year before to nearly 76,000 units. Mid-size sedan Vento was the most exported car for the company, with 63,157 units leaving the Indian shores. “There are a few factors that are fuelling these. One, of course, is the slow domestic market. The second factor is the increasing price competitiveness of the products in the global market due to higher local (India) content,” said Rakesh Batra, partner and national leader-auto sector, at EY.