A silver lining has been witnessed amid deteriorating market demand in the Euro zone, as the export of small cars claim to have experienced a rapid growth of 22 per cent during the initial half of the current financial year. It would be interesting to note that immense concentration of “made-in-India” small cars on the non-European market is also giving a strong push to the export. The encouraging trend signal towards the country’s developing stature as a production hub for small cars.
As a matter of fact the local sale of compact cars, which comprise micro, mini and small segments cumulatively, registered a fall of about 6 per cent at 7,03,802 units during the April-September 2011 period. However, the export of small cars recorded a growth rate of 22 per cent attaining an exorbitant figure of 2, 41,848 units, against 1, 97,761 units in the same period last year.
Hyundai maintained high levels as it continued to be the topmost car exporter from India, selling 1,16,146 units of “made-in-India” small cars worldwide during the first quarter of this financial year. Maruti Suzuki dominated the second spot, however with a huge gap, by exporting only about half of Hyundai’s exports volumes.
Owing to Maruti's ongoing deadlock between the workers and the management at the Manesar plant, its exports saw a nosedive of 20 per cent tumbling to 59,625 units during April-September 2011. Last year though the company noticeably increased its exports in the non-European markets achieving a satisfying figure of 74,779 units.
“Maruti’s export volume at 6,749 units (against estimates of 10,500 units) in September de-grew by 47.5 per cent Y-o-Y (53 per cent month-on-month). Decline in exports was due to labour trouble at Manesar plant. Export contribution to overall volumes expected to fall to about 10 per cent in FY12 from 14.5 per cent in FY10 of the company,” according to a report released by Motilal Oswal Securities.
Hyundai, which is foreseeing a cold response, for its products, from the European markets in the coming months, witnesses a nominal growth in exports when compared with the 1, 14,953 units figure during the previous year. As a matter of fact, its exports to the non-European markets at large scale too.
According to the European Automobile Manufacturers Association (EAMA), car registrations witnessed 1.1 per cent fall at 10,121,423 units in the European Union during January-September period as against the same period last year.
“Our order book from the European market is still strong and the impact of slowdown in Europe will be felt only after a few months as it takes a couple of months for the locally-made cars to reach the markets in Europe,” a Nissan official said.
Ford India’s primary part of small car exports is directed at several non-European markets and it presently exports Figo across 30 countries. “Exports are a strong part of our growth strategy and there has been ever-growing demand for the Chennai-built Figo outside India,” said Michael Boneham, Managing Director, and Ford India.
