While China is the world’s biggest auto market, India is not too behind. Lakhs of vehicles are sold in India every month. A large number of vehicles are exported to mass-markets of other countries too. The only region where the Indian automotive market lacks behind is in vehicle imports, thanks to the very high duties that are levied. With so many major car manufacturers like Suzuki, Hyundai, Ford, etc. manufacturing vehicles here and exporting them to other countries, India had become a major export centre for cars. But now it seems that the trend is slowly going on a downward path with quite a few companies canning their exports from India.
Let us consider Japanese manufacturer Nissan. The auto giant which has a huge presence in countries throughout the globe, used to produce the Pixo and Micra in India and export these units overseas. While exporting of Pixo stopped some time back, Nissan has now planned to put an end to Micra exports from the country with the arrival of the next-gen model. Another Japanese automaker Suzuki used to export a huge number of units of the A-Star (called Alto overseas) to Europe. With the production of the vehicle having come to an end, its exports also came to an end. The company’s latest entrant, Celerio will be sold in the European markets but it will be manufactured and exported from Thailand.
Moving to Hyundai, the Korean company used to export the i10 hatchback to Europe but just like the other cases mentioned above, even i10 exports have stopped. The current generation i20 too was exported from India to Europe, but with the new generation i20 coming soon, its exports from India will be stopped and Hyundai’s Turkey plant will manufacture and export the vehicle to Europe (just like it does for the new i10). Ford too exports one out of every five EcoSport units produced in India to Europe. The company is planning to produce the compact SUV locally in the European and US markets and then Indian exports will reduce.
Here we notice how most major car manufacturers have stopped exporting vehicles from India to Europe. The halt of so many exports might have an effect on the country’s economy as well as affect future growth prospects of the auto market. India could have very well become a huge export hub had these exports continued while others got added. Indian exports to Europe have almost become extinct now. What could be the reasons for this?
Is India’s Dream Of Becoming An Export Hub Coming To An End?