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      Exports of India-made cars to increase in future

      CarTrade Editorial Team

      CarTrade Editorial Team

      Indian auto market is coming up as an export hub for several international auto companies, which shows a sign of growth. Interestingly, the shipments of not just small cars have increased, but also for utility vehicles and sedans. The exports of big cars are on a rise as a number of global companies are selling 'Made in India' sedans and UVs in other markets of the world. Between the tenure April and November 2013, the shipments of sedans marked a growth of 29 per cent at 77,987 units against 60,512 units delivered in last year's corresponding period.

      Exports of India-made cars to increase in future
      Exports of India-made cars to increase in future
       

      According to a report published on The Hindu, the ratio of big cars in total exports grew from 9 per cent to 21 per cent, whereas the shipments of entry level and mid-size sedans increased by 28 per cent and 31 per cent, respectively. In fiscal 2013, the exports of these cars stood over two-fold at 91,478 units against 43,903 units in the year ago period. Expressing his views on the same, the Director of CRISIL Research, Ajay Srinivasan told The Hindu, “Sedan and UV exports from India have indeed been showing a rising trend. Manufacturers have ramped up their capacity for these vehicles due to the increasing domestic demand and have also concurrently started focusing on exports to optimally utilize their capacities.”

      Exports of India-made cars to increase in future
      Exports of India-made cars to increase in future
       

      A significant start was attempted by Nissan in January 2012, when it started shipping its Sunny sedan from the country. Currently, the Japanese auto maker is exporting its Micra hatchback and Sunny sedan to international markets, which are made at its Chennai plant. He added, “While it is little early to say that India has started establishing itself as a manufacturing base for high-end cars, we do visualize the strong growth in sedan and UV exports to continue. The same factors that have made India an attractive small car manufacturing hub – huge size of the domestic market giving economies of scale in manufacturing, strong growth potential, and ample availability of labour and engineers – make India a potent force in the exports of high-end cars as well.”

      Exports of India-made cars to increase in future
      Exports of India-made cars to increase in future
       

      Following the bandwagon, the German auto maker Volkswagen is also shipping its India-made Vento sedan in three continents. Off-late, the company started exporting its cars to Mexico, which will soon emerge as its single largest export region. Besides sedans, utility have seen a growth in their export numbers. During April-November 2012, the figures stood at 4,793 units, which now have been increased to 23,556 units. Notably, the French auto maker Renault is the biggest utility vehicle exporter from the country, which is then followed by Ford and Mahindra & Mahindra.

      Exports of India-made cars to increase in future
      Exports of India-made cars to increase in future
       

      Sources close to the development process have revealed that Ford and Renault are preparing major export plans for their compact Sports Utility Vehicles EcoSport and Duster, respectively. Ford EcoSport, which is produced at company's Chennai plant, is shipped to ten international markets. Also, the international Original Equipment Manufacturers (OEMs) have hinted that the cars produced in India can be competitively sold in every part of the globe.