Car Exports Gain Speed on Track in FY17
NEW DELHI : Prospects of a double-digit growth in the domestic passenger vehicles market in the current financial year look uncertain but a stronger growth story in the export market seems intact. Passenger vehicles (cars, vans and utility vehicles) exports are on track to hit a new record in FY17, as shipments continue to post strong double-digit growth.
In the first eight months of FY17, exports have grown about 16 per cent to 499,037 vehicles, against a growth of 9.84 per cent in domestic sales volume (to two million units) of companies. In the corresponding period of FY16, exports had grown by only 4.3 per cent.
Export volumes could cross 700,000 units for the first time in a year on the back of a sharp surge in numbers from companies such as Ford, Volkswagen and General Motors. India exported a record 653,889 vehicles in Fy16, growing only about five per cent over the previous year. Latin America, Africa and Europe are top export destinations for India-made cars.
A double-digit growth in exports is seen after three years. Among the companies, largest volume addition has come from General Motors. It has shipped 43,015 vehicles in April-November period, registering a 240 per cent growth over last year. India is fast becoming a major export hub for a number of manufacturers and GM India is no exception, Kaher Kazem, president and Managing Director, GM India said last month. GM India, like Volkswagen, Ford and Nissan, sells more India made vehicles outside than in the Country. Srivastava said the rising volumes in the domestic and export market is improving the economies of scale of companies and making the country a more competitive base for export of quality products.