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(Transportation-News.com, September 28, 2012 ) San Francisco, CA- Known for manufacturing compact cars, India recently entered the sedan and SUV market to combat currency fluctuations and declining domestic demand.
Most notably Maruti Suzuki (MSIL), which designated India its production headquarters for the DZire sedan and Ertiga SUV, recently began exporting its product. An MSIL senior executive said, “Exports are a natural hedge against adverse forex fluctuations. We aim at substantially growing sales abroad to counter our rising import bills. As we reach out to more markets, we start diversifying our product mix. We have recently started shipping sedan DZire to Africa, and are assembling Ertiga in Indonesia.”
A company spokesperson said the DZire now accounts for 13% of its exports, with more than 6,000 units selling abroad since it began exporting it in May.
“With sedans and utility vehicles increasingly gaining acceptance among consumers in the Indian market, automobile manufacturers are introducing more models in these segments,” said V.G. Ramakrishnan, senior director of automotive and transportation for Frost & Sullivan, a United States-based consultant firm that provides market research and analysis, growth strategy, and corporate training services.
“To gain the requisite volumes for producing a model cost-effectively, companies have started shipping out bigger cars.”
MSIL isn’t alone. Toyota Kirlorkar Motor, Toyota’s India-based subsidiary, plans to export 22,000 units of its Etios series to Africa this year, while Volkswagen India is looking into shipping left-hand-drive versions of its Vento sedan beyond its current markets in South Africa and Malaysia and Nissan India recently diversified its exports with the Sunny sedan. The company shipped 12,567 units, or 35% of its international sales, of the Sunny last spring.
Abdul Majeed, a partner in automotive practice with international financial consulting firm, Price Waterhouse Coopers, said, “Some of the export markets do not have the volumes to justify setting up a manufacturing or assembly plant. India is a low-cost manufacturing hub, and automobile makers are leveraging it as a base to grow in the derivative markets.”
That contention is apparent in Renault India’s export strategy, which involves plans to ship up to 3,000 units of the newly released SUV Duster to the United Kingdom.
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Source: EmailWire.Com 
Source: EmailWire.com
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