Indian car exports to touch 1 million by 2010

July 11, 2007

Passenger car exports from India is likely to touch the all-time high of 1 million by year 2010, according to industry reports.

India recorded exports of around 1,92,000 cars in 2006-07. The export scene is hotting up with automobile companies aggressively pushing export
targets propelled by a slump in domestic sales.

Maruti is planning to export over 2,00,000 cars by 2010. With demands from Europe growing, Maruti seems very likely to post this target. Maruti, which has over 51 per cent market share in the Indian market, had exported only 38,000 passenger cars in 2006-07, around 6.4 per cent of its total sales. The car maker currently exports to Indonesia and the Philippines. It has bagged an export order of 11,000 units of the Zen Estilo to Indonesia and 1,500 units of the Alto to the Philippines.

The company aims to export 55,000 cars this year, up 45 per cent from last year’s numbers. Competitor Hyundai Motor India (HMI), which takes pride in being the largest exporter of passenger cars from the country, had about 60 per cent of the export market share in 2006-07. Its Santro had accounted for over 91 per cent of exports. The company is now looking at adding to its export volumes.

According to a report, Hyundai, in the next 2-3 years, might export around 3,00,000 cars. It currently has a presence in 67 countries, including Latin America, Europe, Africa, and West Asia. Further, Hyundai is also looking at exporting 50,000 completely knocked down units to Russia, the CIS and
Taiwan as these markets gave it a price advantage. Around 71 per cent of the exports consist of small car sales, with the Santro alone accounting for
55 per cent of the entire car exports from India.

Meanwhile, industry bodies opine that with many a players lining up their massive projects, the auto industry will exceed the earlier trend of 40 per cent compounded annual growth rate and go past the one million mark.