Ford leads the charge in Made-in-India PV exports

With substantial demand from Europe for the made-in-Sanand Ka+ hatchback, Ford India tops the export chart after the first five months of the fiscal.

By Ajit Dalvi calendar 18 Sep 2017 Views icon8231 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Growing overseas demand for the made-in-Sanand, second-gen Figo (sold as the Ka+ in Europe) is giving a boost to Ford India export numbers.

Growing overseas demand for the made-in-Sanand, second-gen Figo (sold as the Ka+ in Europe) is giving a boost to Ford India export numbers.

Ford India, which is seeing handsome overseas demand for the made-in-Sanand, second-generation new Figo hatchback (sold as the Ka+ in Europe), is the No. 1 passenger vehicle (PV) exporter for the April-August 2017 period.

Although the industry’s total PV exports from India at 303,801 units indicate marginal 2.62% year-on-year growth, Ford India with 74,591 units (+23.80%) has the biggest share, accounting for 24.55% of the shipments. Its exports in August though were down at 7,963 units (-55.41%).

Built at the Sanand manufacturing plant, the new model has been heavily revised for Europe, and gets standard equipment which includes six airbags, Ford’s Sync voice-activated phone and audio system, a smartphone docking station, a speed limiter and hill start assist. The Ka+ is offered only as a five-door hatchback, but with two trim levels. It is powered by a 1.2-litre, four-cylinder engine, which is closely related to the 1.25-litre engine used in the Fiesta, but is cheaper to make.

Ford India also exports the Ka compact sedan and standard sedan along with the EcoSport SUV (made at the Chennai plant) to foreign markets.  

Hyundai Motor India, the country’s No. 1 exporter, is seeing a decline in its overall overseas shipments. The Korean carmaker has, in the first five months of the fiscal, exported 58,268 units (-17.81%) to overseas markets. The company, which currently exports its vehicles to 87 countries worldwide, ships the Eon, Grand i10, Xcent, Elite i20, i20 Active hatchbacks and the Creta SUV. The key global markets for the company are Latin America (Mexico, Chile , Peru, Panama); Africa & Middle East (South Africa, Algeria, Tunisia) and Asia Pacific (Philippines, Nepal).

Maruti Suzuki India, which has its plants running at full capacity to cater to surging demand in the domestic market, has shipped 48,653 units (-0.53%) in the April-August 2017 period. The reason for flat export growth is that the company is hard-pressed to cater to surging demand for its products in the domestic market (671,954 units / +18.30%). In April-August 2017, the company has produced a total of 714,953 units from its three plants at Gurgaon, Manesar and Gujarat (+17.45%) which has been just about enough to keep the combined domestic and export sales going (720,607 units in April-August 2017).

German carmaker Volkswagen India, meanwhile, has recorded good growth of 13.98% with export of 42,173 units. The company, which has for long been benefiting from its make in India growth strategy, exports cars from its Pune plant to over 35 countries across the four continents of Asia, Africa, North America and South America. Mexico continues to be its biggest export market, contributing over 80 percent of its overseas volumes. The range of cars being exported includes left-hand drive as well as right-hand drive Polo and Vento cars. In FY2017, the company shipped a total of 86,852 units from India, registering 14.30 percent YoY growth.

GM India, which is focusing solely on export operations from its Talegaon plant since end-April 2017, has shipped 36,810 units (53.60%), enough to keep its operations in India running.  

exports have helped keep its Talegaon plant running. After failing to ignite much interest for its cars in the domestic market, the American carmaker had some time ago shifted its focus on exports to better utilise the manufacturing capacity investments made in the country. The strategy has reaped benefits as the Chevrolet Beat, which is sold as the Spark in many countries globally, has become one of the most exported cars from the country in 2016-17. GM India, which has begun exporting the sedan version of the Chevrolet Beat from end-June 5, also produces the left-hand-drive Chevrolet Beat hatchback for exports to markets like Mexico, Chile, Peru, Central American and Caribbean countries, Uruguay and Argentina. In FY2017, the company exported 70,969 units, which mark 88 percent YoY growth.

Nissan Motor India has seen export of 25,809 units (-32.38%). The Japanese manufacturer is feeling the heat of export demand having shifted to the Flins plant in France which produces the new Micra which is seeing good demand in Europe.


Exports help sustain Ford, VW, Nissan operations in India
As per the latest industry data from SIAM, other than GM, which has demitted domestic operations, export operations are helping sustain the India manufacturing operations for Ford, Volkswagen and Nissan.

Ford India, which has sold 36,703 units in the domestic market (-1.87%), has seen a smart 23.80% jump in foreign sales to 74,591 units, more than twice what it has sold in India.

Likewise, Volkswagen India has exported more than twice what it has sold in India. Compared to export numbers at 42,173 units (+13.98%), the German carmaker’s India sales in the April-August 2017 period are 19,686 units (+1.47%).

Nissan Motor India though is having a tough time both in the domestic and export markets – the company sold 21,647 units in the domestic market (-10.11%) and exported 25,809 units (-31.38%). 


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