India has surpassed car exports figures as compared to China and has emerged as Asia’s largest car exporter to the world. India has always been known to be the most favoured outsourcing hub but this is the first time that it is being recognized as a favoured manufacturing hub as well. Maruti Suzuki and Hyundai Motors are two of the largest exporters of small cars from India.
Hyundai Motors India Limited already exports nearly half of its production across the globe especially in Europe. Hyundai i10 is one of the most successful brands from Hyundai portfolio and the company sold more than 100,000 units in 2008 alone. Maruti Suzuki has also doubled its exports figures this year with exports of its popular model A-Star which is being sold as Suzuki Splash in Europe. Maruti is also setting up a new research and development wing in Gurgaon near Delhi.
Apart from these two auto manufacturers, nearly every auto manufacturer in India is planning to launch a new car and set up a plant in India. Volkswagen is setting up its plant in Maharashtra where it will also assemble its hatchback model Polo. Nissan and Renault are also setting up their manufacturing unit near Chennai which will manufacture models for both the companies and cater to overseas demands as well. Ford also has its engine plant in India which powers its global models.
"Firstly, there is a good strong vendor base, which is very, very quality oriented. Secondly, the low cost of manufacturing and thirdly, the government subsidies that have been provided for many cars - all these three factors are strong pillars for making India a hub for exporting cars," said Ankush Arora, vice president, Marketing and Sales, Chevrolet India.
