New Delhi [India], August 31 (ANI): Global automakers want to flip India into an export hub, as persons are shifting from native demand to pricier automobiles and that will spur extra ‘India-first’ fashions, Nikkei Asia reported.
India had already surpassed Japan and develop into the world’s third-largest automobile market and now it appears that evidently they’re turning the worldwide producers in direction of them. As Indian drivers are choosing costlier automobiles, international producers are additionally designing the car for India.
In a dialog with Japan-based Nikkei Asia newspaper, Frank Torres, president of Nissan India mentioned that the Japanese automaker “wants to use India as a big hub for exports.”Nissan, which is at present exporting the Magnite SUV, is planning to begin the left-hand drive variants of the SUV within the Middle East and Latin America.
Nissan and its accomplice Renault dedicated USD 600 million this yr to roll out six new automobiles, together with electrical automobiles, that can go on sale in 2025. All these fashions will probably be exported, as per Nikkei Asia.
“Export [from India] is one of the pillars of our strategy,” Torres mentioned. “It is not only to increase the revenue but also increase our [production] capacity utilization,” he added.
Analysts say the shift in native demand from small, cheap automobiles to higher-quality automobiles might encourage different international automakers to plan extra “India-first” fashions which can be ultimately exported.
“Carmakers have learnt that if you make a compelling product, Indians are not averse to it,” mentioned Harshvardhan Sharma, head of automotive retail follow at Nomura Research Institute. “Manufacturers need not plan track one for India and track two for the global markets, as the Indian market is quite in sync and harmonized with global markets,” Sharma added.
India’s lower-cost automobiles are one other potential benefit for an export-focused strategy.
Piyush Arora, managing director and CEO at Skoda Auto Volkswagen, instructed Nikkei Asia that the India unit will spearhead the group’s growth in Southeast Asia.
“We are definitely exploring newer markets [for export from India] … Until last year, we were exporting only Volkswagen brand cars and now we started looking at Skoda brand cars as well [to the Middle East],” Arora mentioned. “I definitely believe that we have a cost advantage for the domestic market, and it translates into a cost advantage for exports as well. The strength of India’s low-cost manufacturing possibilities is definitely utilized.”The nation has an in depth community of home part suppliers and relatively low cost labour. The Automotive Component Manufacturers Association of India mentioned in a report earlier this month that the auto components sector grew about 33 per cent in fiscal 2023 to about USD 70 billion.
Analysts say growing exports is essential for international carmakers which have been overshadowed by native rivals similar to Maruti Suzuki, Tata Motors and the Mahindra Group, reported Nikkei Asia. (ANI)