The Hindu Business Line : Indian auto exports go into overdrive

INDIA'S automobile industry is literally going places. According to a Government data released here, India exported cars worth Rs 897.11 crore in 2002-03, a jump of 114.47 per cent over the previous year's exports of Rs 418.28 crore.

Similarly, the exports of two-wheelers from India have almost doubled to Rs 513.17 crore in 2002-2003 from Rs 263.26 crore in 2001-02.

And the exports are not limited to neighbouring regions. According to the data, cars were exported to about 80 countries in the year, including the Netherlands, Italy, Germany, Algeria, the UK, and France. Similarly, two-wheelers were exported to about 115 countries out of which the major exports were to Sri Lanka, the Philippines, Mexico, and Bangladesh.

Industry analysts point out that the export trend will only get stronger and this fiscal too may see a more than 100 per cent growth in exports. According to the data released by the Society of Indian Automobile Manufacturers (SIAM), 72,535 cars were exported in the period April-November 2003, compared with 42,929 units in the same period last year. Similarly, two-wheeler exports grew to 1,63,125 units in April-November 2003, compared with 1,08,733 units in the year-ago period.

Needless to say, with lower cost of operations and availability of trained manpower, India is emerging as a sourcing hub for global automakers. Players such as Hyundai India (for the Santro Xing), Maruti (for the Alto), and Tata Motors (through its tie-up with Rover) have announced aggressive export plans for the year.

Hyundai, for instance, has set an export target of 30,000 units for the Santro Xing (sold as the Atos Prime in Europe) this fiscal. "We expect exports to account for about 30 per cent of our total volumes for the Santro by 2004-05, up from the current 15 per cent. We are targeting to export 75,000 cars in 2004-05 making us the largest exporters in the manufacturing sector from India," a Hyundai official said.

Within the two-wheelers category, major exporters include the likes of Honda Motorcycle and Scooter India, which saw exports of its gearless scooters increase to 18,303 units in April-November 2003 from 5,288 units in the same period last year.

Meanwhile, exports of players such as Bajaj Auto, which is to become a sourcing hub for lower capacity bikes for Kawasaki, and Yamaha are also on the rise.

Further, more Indian players are taking to the export track. Kinetic, for instance, which has been exporting its range of bikes and scooterettes, has recently sent off its first batch of 2,000 GF-125 bikes for the Korea-based Hyosung (its technical partner).

"These bikes will be sold under the Hyosung brand name. Exports of the GF-170 series will also follow soon," Ms Sulajja Firodia Motwani, Joint Managing Director, Kinetic Engineering, said.

According to a recent ICRA report on the two-wheeler industry, the immediate target markets for Indian companies are South-East Asian countries such as Thailand, Indonesia and Vietnam, besides a few South American nations.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Govt to freeze grains procurement price

Indian auto exports go into overdrive

Soros plans to buy out GIC in mutual fund

Ranbaxy buys Aventis' generics unit in France

SAIL mulls jt venture with BHP group for coal mining

SEBI stipulates minimum 20 investors for MF schemes