New Delhi: Passenger car exports are expected to cross the million-unit mark before 2014, thereby taking India closer to its goal of becoming a global small-car hub.
This doubling of exports (currently India exports just about half a million cars every year) would largely be driven by the entry of global manufacturers and would happen despite there being no major policy push for vehicle exports so far.
From Europe’s largest carmaker Volkswagen to Japanese giants Toyota and Honda, American manufacturers General Motors and Ford, Korea’s Hyundai and of course Maruti Suzuki -each of these companies has set up manufacturing facilities in India in a bid to sell in the domestic market as well as cater to export markets.
The president of the Society of Indian Automobile Manufacturers (SIAM) Pawan Goenka admitted that there were “no strong policy incentives from the government to push vehicle exports but the industry is talking on this……2010 itself should be a very important year to establish India as a global small car hub because we see robust growth”.
On the auto component front also, exports are expected to bring in the moolah. According to industry estimates, 50% (which means $2 billion) of the component industry turnover in 2016 should come from exports.
This follows an increase in component sourcing by most global OEMs operating in India and by some who are yet to set shop here. If we take some well known examples, General Motors is targeting $1 billion worth of component sourcing from India and has already achieved 0.5 million per year. Volkswagen and Fiat are also talking of similar sourcing deals from here.
All in all, Indian components and India-made vehicles are expected to increasingly grace global markets!
Source : Dnaindia.com