India is slowly and steadily becoming a hub for car exports. Three models developed and made exclusively in India, namely Toyota Etios, Ford Figo and Maruti Suzuki Ertiga, are performing extremely well in the international market.
Toyota Etios, the cheapest car from the Japanese auto maker, is being exported to South Africa from India; where it is enjoying great success. Along with Toyota Etios, Ford Figo is also sharing the limelight and has emerged as the tenth largest selling car in South Africa, so far this year. On the other hand, Maruti Suzuki Ertiga ranks fourth in terms of sales in Indonesia, which is one of the largest auto markets of the world.
Ford Figo was the first India-developed car to gain success in South Africa and since its launch; it has always ranked amongst top 10. According to statistics, approximately 15000 units of Ford Figo were exported from India. Toyota Etios entered the South African auto market in the month of May in 2012. Counted amongst the largest selling cars in the country, Etios has climbed to the fourth position from seventh, which it ranked at the time of its debut last year. With its monthly sales averaging around 2000 units, it is touted to take the top spot soon. In Brazil too, Etios is performing exceptionally well, with an average monthly sales of around 5000 units.
Besides, Maruti Suzuki Ertiga has been a top performer in the overseas market, which includes the likes of Indonesia. IV Rao, Executive Advisor, Maruti Suzuki India Ltd. spoke about Ertiga - “The concept of the vehicle was designed entirely in India.” He further added that “Ertiga was designed keeping in mind the needs of emerging markets and it has been well received in Indonesia.” In the past five months, Ertiga has taken the second spot thrice in terms of sales in Indonesia and is expected to soon consolidate this position this year.
All these statistics and reports strongly indicate the kind of importance India holds for automobile manufacturers. In recent years, it has become a testing ground for several auto makers. It is primarily because of the similarities in consumer preferences in India and other countries, including Brazil, Indonesia and South Africa. Car makers are now developing cars for Indian consumers, alongside keeping an eye on the other key markets, with similar preferences of consumers.
Commenting on India’s growing importance, Carlos Ghosn, Chairman and Chief Executive Officer of the Renault-Nissan alliance said that “If we get a product right in India then the product is ready to be accepted elsewhere....in growing markets. If you want to make a value for money product with frugal engineering, India is the place to do so. And that is why we are banking so heavily on it. By 2016, 60% of the automobile market will be in countries like India, Brazil, China, Russia and Indonesia,” he said.
Ghosn's claims can be substantiated by the fact that Nissan Datsun is restarting its voyage from India. The Datsun Go, its first car, has been fully developed in India and is expected to be launched in the country by 2014. The Renault-Nissan alliance has also made India the leading nation for its Common Module Family-Affordability platform, which aims at producing low cost cars.
Industry experts feel that this move by auto makers is highly plausible given the kind of opportunities they get in the India, which itself is counted amongst the largest car markets in the world. Moreover, with the cars being exported from India, the scale only expands and the costs incurred by the company only get reduced further.
