A reduced demand in the domestic market has led to a new opportunity.Passenger vehicle manufacturers and associated parts manufacturers are leveraging the opportunities overseas especially in nascent markets like Africa.
Export demand for Made-in-India products has witnessed a growth of 20.37 per cent in the export of passenger vehicles in the month of November. The Society of Indian Automobile Manufacturers (SIAM) attributes the rise in passenger vehicle exports to the expansion in the overseas markets like Africa and Middle East. According to a report recently released the overall car makers exports was in total of 58,562 units in November 2019. The Indian automobile industry is one of the key forces of the economy contributing about 49% to the country’s manufacturing GDP (gross domestic product) and 7.5% to its overall GDP.
The Oragadam, Chennai based Renault Nissan Automotive India Private Limited (RNAIPL)which is the third-largest exporter of passenger vehicles registered a rise of 71.10 per cent in its shipments. It exported 8,680 units in the month of November 2019, compared to 5,073 units of the previous period. Nissan India plant is expected to close the financial year registering over 65,000 units of exports for Nissan and Datsun brands. Renault India also saw an overall hike of 91 percent in exports thanks to the recently launched Renault Kwid which is being exported to the SAARC and Africa regions.Nissan has also initiated exports of the all new Nissan KICKS to Nepal and Bhutan, the Datsun GO and GO+ CVT to South Africa and Sunny in the Gulf region.
According to Mr. BijuBalendran, MD & CEO of Renault Nissan Automotive India Private Limited (RNAIPL), higher export figures were possible only due to the high quality level and cost competitiveness of the products from RNAIPL. He also said that Renault India aims to remain one of the largest automotive exporters from India and keep up the commitment to support ‘Make in India’ initiatives. Revenue from exports has helped maintain a healthy cash flow and substantially boosting the capacity utilization enabling greater efficiencies.
South Korean carmaker, Hyundai accounts for 27.15 per cent of the total exports, shipping 15,900 units and witnessing a growth of 25.18 per cent.On December 2, 2019, the carmaker launched its compact SUV Venue, in South Africa, and has already shipped 1,400 units from Chennai Port. Hyundai India is also targeting other markets for Venue exports including Nepal, Bhutan, Mauritius, and Seychelles.Recently, Hyundai Motor India Limited (HMIL) invited over 60 international partners to strengthen and expand its export market.
Hyundai Venue left-hand drive model is currently under development and is planned to be exported to the Gulf, Africa, and Latin American regions, while the right-hand drive model 1.0 Turbo GDi with 7 DCT is already being exported to all the countries including South Africa.
Posted on : 24 Oct,2020 | News Source : https://auto.economictimes.indiatimes.com/