Passenger car exports likely to show positive growth in FY13 - Compiled By Exim Rite
Passenger car exports are likely to stay better than domestic market scenario. While Indian market is expected to report fall in overall car sales compared with last financial year, exports from India may show positive growth despite a weak European market.
Major car exporters such as Hyundai and Nissan expects higher numbers, while Maruti is attempting to achieve at least last year’s export volumes. In 2011-12, car exports were up 14 per cent despite a EU slow down.
However, during April-September 2012 period, passenger car
xports grew by just two per cent at 262,929 units. Hyundai saw a marginal rise of three per cent at 133,694 units. However, Maruti saw decline in exports to 52,338 units as against 59,950 units in the same period previous year due to production disruptions, while Nissan’s exports fell to 46,017 units from 49,732 units due to fall in Micra volumes.
Meanwhile, Toyota, a latest entrant into the car exports club, exported 13,666 units during April-September 2012 period. Toyota commenced exports of made-in-India Etios models from April this year. Ford’s exports dropped to 11,308 units as against 12,550 units in a year ago period.
However, car exporters expect the current quarter and the first quarter of 2013 to be better for exports. “We have been the largest exporter since last eight years. We export to around 120 countries globally. In 2011, we exported 2.42 lakh cars (about 40 per cent of our total volumes). Hyundai exports to global markets from Lebanon and Israel in the Middle East to Australia. But about 42 per cent of Hyundai India’s exports go to EU countries such as Germany, Spain, Italy and the UK, which are very quality conscious markets. This year we expect positive growth in exports,” Rakesh Srivastava, vice-president - national sales & marketing, Hyundai Motor India told Financial Chronicle.
After 13 per cent fall in exports during H1FY13, Maruti is hoping to accelerate the export volumes in the second half. “In the first half, we were constrained on the supply side due to issues at our Manesar facility. Our flagship exports model A-Star was not available. With Manesar reaching its peak capacity soon, we expect that exports will improve in the second half of the year. We are trying to match last year’s export numbers but with European markets in a slowdown, the task appears tough,” Mayank Pareek, chief operating officer, Maruti Suzuki India said.
Moreover, the company will also start exporting its new Alto 800 this financial year. “We do expect good numbers in exports for the new Alto 800. We will export it in African and Latin American countries. This is expected to begin in Q4 of this fiscal. On an annual number basis, we will be happy if we are able to achieve last financial year numbers for exports,” he added.
As part of de-risk strategy, the company has been giving stronger thrust on car exports to non-European Union markets and emerging markets in Asia and South America and the strategy has actually paid dividends. Of the 53,000-units in H1, as much as 82 per cent were exported to non-European markets, compared with just 23 per cent in 2009-10. Presently, 30 per cent of the export volumes come from Africa (up from eight per cent in 2009-10). Latin America presently contributes 28 per cent (up from five per cent in 2009-10). Europe’s share in the company’s exports is now only 18 per cent from a high of 77 per cent in 2009-10. Popular models in overseas markets include the iconic Maruti 800, Alto, Alto K10 and A-star. “In addition, to bring in more numbers, we are taking initial steps to export left hand drive DZire to Africa. Some of our big markets in Africa are Algeria, Angola, Mozambique, Nigeria and Egypt,” said Pareek.
Nissan’s car exports are currently driven by Sunny as the Micra exports volumes have fallen as its destinations are not doing well. However, India-built Sunny is doing well with exports to West Asia and South Africa. Nissan exported about 100,909 units of Sunny and Micra and it hopes to increase the total exports to about 140,000 units by the end of this financial year.
Source : My Digitalfc
