Economy
Made-In-India Cars Report 4 Per Cent Growth In Exports, Maruti Suzuki Achieves New Milestone
Market leader Maruti Suzuki achieved a new milestone by exporting 261,700 passenger vehicles.
Indian-made cars are experiencing increased acceptance worldwide, with major automakers focusing on exports to leverage India's strong cost and talent advantages as reported by The Economic Times.
According to data from Jato Dynamics, Toyota, Volkswagen, Hyundai, Mahindra, Tata Motors, Honda, and Skoda have all witnessed significant growth in exports in 2023.
Market leader Maruti Suzuki achieved a new milestone by exporting 261,700 passenger vehicles, including cars and SUVs.
Indian regulatory norms align with global standards enabling vehicles developed and sold in India to require minimal adaptation for export markets.
The country's low-cost manufacturing, labour cost arbitrage, skilled manpower availability, and well-developed supplier base provide carmakers with a competitive cost advantage.
Piyush Arora, managing director and CEO of Skoda Auto Volkswagen India, highlighted the industry's focus on safety, emissions, and technological advancements, with investments in research, development, and innovation.
Volkswagen reported a 29 per cent growth in exports, while Skoda's exports soared by 431 per cent to 1,530 units in 2023.
Commerce and Industry Minister Piyush Goyal, speaking at the Bharat Mobility Global Expo 2024, urged the automobile industry to increase the share of exported vehicles to 50 per cent of all passenger vehicles manufactured in the country by 2030, up from the current 14 per cent.
India's car exports totalled 671,384 units in 2023, up 4 per cent from the previous year.
The electric vehicle (EV) segment is expected to contribute to the export boost, driven by the production-linked incentive scheme for the automobile and parts industry.
Carmakers are set to launch several EVs in the coming years, with plans to export them to overseas markets.
Toyota Kirloskar Motors (TKM) has restarted exports, exporting the Made-in-India Urban Cruiser Hyryder hybrid SUV to South Africa and West Asia.
The company aims to contribute to "mass electrification," positioning India as a global manufacturing hub for cleaner and greener vehicles.
Car companies, such as Skoda Volkswagen, are evaluating new markets and regions. Skoda Volkswagen plans to export India-made cars to East Asia, including the Skoda Kushaq and Skoda Slavia, starting in 2024.
However, challenges exist in some markets due to tough competition, especially from Chinese makers, who overtook Japan as the largest car exporter in the previous year.
Despite uncertainties related to geopolitics and high inflation leading to shipment disruptions in the past year, Indian automakers remain optimistic about boosting exports.
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