Japanese car makers Nissan and Toyota, in a move that could owe itself to the depreciating Rupee condition, have begun to export their mid-sized cars to the West from India. Undoubtedly shedding some light on the country’s technical prowess, the real reason of course is to make use of the cost advantage to the fullest. While Nissan plans to export close to 50,000 units of its Sunny to the west in the next 12-18 months, arch rival Toyota too has plans to export Indian made Etios to its market in South Africa.
Experts say that this would not only help with the Rupee melt-down, but also help deal with costlier imports which have turned dearer in the recent months by 25-30%. Volkswagen and Ford are expected to join in along with French car maker Renault which plans to export close to 25,000 units of its SUV Duster to U.K. over 12-18 months. Also, Volkswagen India has been mandated to include technology that would assist in the production of the left hand drive version of their popular mid-size sedan Vento. Volkswagen plans to export 8,000-10,000 such units by 2013.
Over 100,000 sedans and SUVs made in India are slated for export over the next twelve months. The Rupee that has been consistently on the downfall in the recent months is bound to surely accelerate such plans. We only hope that the increased production in India has some benefit for the brands’ Indian customers!
– Rohit Nair
