Exports by automotive industry (file photo)
New Delhi: After being world’s largest exporter of compact cars, India now wants to leverage its core strength of high-quality manufacturing to emerge as a $45 billion trader in the international market. It has targeted $45 billion revenues from vehicle exports by 2026, from the current $12 billion. And, to achieve this revenue target, India has identified that it needs to do business with 20-key countries.
The giant leap is expected from the 20-key focus markets like Mexico, Australia, UK, Algeria, Libya, Nigeria, Kenya, South Africa, Egypt, Chile, Peru, Columbia, Saudi Arabia, UAE, Israel, Indonesia and Philippines playing a critical role to quadruple export revenues over the next decade.
The Automotive industry has requested the Government to intervene so that a bilateral dialogue can be initiated with export potential markets. The industry opined that to drive growth there should be promotion of automotive exports, export infrastructure, incentive. Also, the auto industry pressed for steps to be taken so that the potential markets accept Indian homologation certificate, and sign a free-trade agreement (FTA) with them.
The measures will help it compete with Germany that dominates the international market and counter threat from China, which is strategically increasing its presence across Africa & Asian markets. China with its massive infrastructure investments is pushing its automakers to gain access and increase presence in many of these emerging markets and its affordable cars compete directly with Indian products. Hyundai, Nissan, Ford Motor, Volkswagen and Maruti Suzuki are major exporters from India, while the new in the league like KIA Motors of South Korea also plans to make India its export hub.
Not only the car manufacturing companies, but also the Indian two wheeler companies -- like Hero MotoCorp, Bajaj Auto and TVS Motors -- have ambitious export plans. India is world’s largest two-wheeler market with 22-million domestic sales. It now aims to export 10-million units by 2026, from the current 3-million-a-year.
India’s total automotive exports that also include auto components stand at $25 billion with major shipments heading to US, Europe and few Asian markets. After a complete stagnation in Europe, its largest single market, Indian automakers are now looking at new set of emerging market to drive volumes to kick off a four-fold $100 billion target.
India is also negotiating to be part of the Regional Comprehensive Economic Partnership where it can trade freely with Japan, China, Korea, Australia and the ASEAN Region as a single block to have low-tariff trade which could further boost Indian automotive.
Made in India cars are already accepted worldwide with Chevy Beat and Ford EcoSport being sold in the US; world’s most developed market.