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Customer LoginsPassenger vehicle exports from India grow 14.1% y/y in H1
Ford topped the list of vehicle exporters from India in the first half of 2016, overtaking Hyundai on the back of the continued popularity of its EcoSport compact sport utility vehicle in key markets.
IHS Automotive Perspective
- Significance: Passenger vehicle exports from India surged 14.1% year on year (y/y) during the first six months of 2016, with Ford, Volkswagen, and General Motors registering the biggest gains.
- Implications: The export figures for individual automakers are in line with the trends evident in the Indian market. The growth in export volumes is dominated by automakers that are underperforming in the domestic market.
- Outlook: Hyundai India and Maruti Suzuki are among the OEMs that either maintained or increased their domestic market share during the six-month period by sacrificing export volumes. This trend is unlikely to reverse without the addition of capacity at the automakers.
Passenger vehicle exports from India surged 14.1% year on year (y/y) during the first six months of 2016, according to data released by the Society of Indian Automobile Manufacturers (SIAM). Automakers exported a total of 320,886 vehicles in the first half of the year, up from 281,213 units in the same period of 2015. Overseas vehicle shipments registered y/y growth in each month of the period after a decline in January. In June, passenger vehicle exports jumped 34.0% y/y to 53,609 units.
In terms of automakers, Ford topped the list with overseas shipments of 41,535 units during the period. The automaker registered a massive gain of 81.4% y/y in its first-half volumes. The automaker's volumes were boosted by the continued popularity of its EcoSport compact sport utility vehicle (SUV) in key markets. During the six-month period, Ford emerged as India's biggest exporter, overtaking Hyundai, which recorded a decline of 10.6% y/y in export volumes to 41,385 units. Nissan claimed third position by exporting 39,333 units in the period, marking growth of 8.5% y/y. The Japanese automaker overtook Maruti Suzuki, which took fourth position with shipments of 33,220 units. Maruti is traditionally the second largest vehicle exporter from India after Hyundai but it saw a decline of 19.7% y/y in the first half. Another automaker of note is Volkswagen (VW), which expanded its overseas shipments by 66.7% y/y to 28,380 units. During the period, General Motors (GM) joined the top exporters with shipments of 20,658 units, a strong increase that left it in sixth position.
Outlook and implications
The export figures for individual automakers are in line with the trends evident in the Indian market. The growth in export volumes is dominated by automakers that are underperforming in the domestic market. This group includes Nissan, VW, and GM, while Ford is an exception as its passenger vehicle sales in the Indian market jumped 29.6% y/y to 41,868 units in the first half. In contrast, Nissan's sales in the Indian market declined by 4.8% y/y to 22,642 units, despite launching a new vehicle under the Datsun budget brand. Similarly, VW is going through a rough patch in the Indian market, as indicated by its first-half sales volumes of just 20,750 units, down 13.3% y/y. With first-half sales of just 14,690 vehicles (down 322.6% y/y), GM did not feature in the top-10 OEMs in India. Given their gross underperformance in the Indian market, these automakers are now using their manufacturing facilities in the country to produce vehicles for export markets. GM is the latest to join this trend, as the sharp surge in its export volumes indicates.
On the other hand, Hyundai India and Maruti Suzuki are among the OEMs that either maintained or increased their share of the domestic market during the first half. Hyundai is known to be facing capacity constraints in producing enough units of the popular Creta sport utility vehicle (SUV), and as a result has reduced the number of vehicles destined for export markets. There has been a similar approach by Maruti Suzuki, which is facing capacity constraints amid the growing popularity of its Baleno hatchback and Vitara Brezza compact SUV. Although Maruti is currently producing the Baleno for export markets at its Manesar plant, a meaningful increase in export volumes can only take place in 2017 when its parent company Suzuki starts production at the Gujarat plant. Maruti will sell the vehicles produced at this plant in the domestic and overseas markets.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.