India exported vehicles, auto components worth INR 59,360 crore in FY 2016
During the last financial year, as much as a quarter of the vehicles shipped out of India made their way to Latin America. Total exports from India to Latin America in the year ended 31st March 2016, included trucks, buses, cars, motorcycles auto components like engine, chassis etc to the tune of $8.86 billion (INR 59,360 crores).
Even while overall exports to other overseas markets remained flat, exports to Latin America increased 19% to $2.26 billion.
This was despite increased logistics costs that involved shipment of vehicles to Latin America located 15,000 kms away from the country. These increased exports were thanks to cost effective manufacturing facilities available within India along with better government incentives offered on exports. Automakers who were not doing well in domestic sales managed to take advantage of increased exports to ensure better market share and keep factories running at optimum levels.
90% of Volkswagen and 29% of Hyundai’s exports were to Latin America overtaking exports to Africa for the first time. In the past fiscal, automobile exports to Africa declined for the first time in a decade by 21.5% to $2 billion which took a hit due to fall in crude oil and commodity prices. Africa is largely dependent on income from crude exports.
Volkswagen exports to Latin America included 63,000 units of Polo and Vento both of which have been well accepted in the region, especially Mexico. Hyundai exports to Latin America included the Eon, i10, Grand i10, Xcent and i20 Elite besides the i20 Active and new Creta SUV.
Besides these two automakers, General Motors also noted increased exports to Latin America this past fiscal with its new Chevrolet Beat being in much demand while Maruti Suzuki exports the new Ciaz to Latin America as well.