Positive exports despite the slowdown in Motown
CHENNAI: As the auto industry fights its worst slowdown in 20 years, one segment has remained positive: exports, which have increased 5% in the first fiscal period, as companies boost exports in an attempt of depleting inactive production capacity.
“Domestic sales are slow, so efforts are being made to try to increase exports and those efforts are appearing. India is a largely small car market and these vehicles find a market in emerging countries in Africa and Latin America, for example, said R C Bhargava, president, Maruti Suzuki .
This approach in Africa and Latin America is true for both car and two-wheel shipments. Take Nissan for ex. which has focused on new markets to increase its exports. “In the case of Nissan, we have been able to explore new opportunities in markets like South Africa for our exports. Exports have gone well due to new markets for existing products, as well as a better and newer product portfolio. Globally, some markets in Africa, the Middle East and Southeast Asia are working very well and we have been able to capitalize on those opportunities, especially with our GO and GO + and Sunny models, ”he said Rakesh Srivastava MD Nissan Motor India. null
The same is true for Hero Motocorp which has been boosting its presence in Latin America. “Most of the growth in exports of two-wheelers in the last 10 months came from the African market. Some of the key markets in Latin America have also experienced growth during the same period. We expect the trend to continue for the rest of the months in this fiscal year, he said Rajat Bhargava , head of global business at Hero MotoCorp. The consultants say that the export game not only depletes capacity, but also offers companies some comfort on a margin in a difficult year. “When national sales are low, exports are a better margin business in the balance sheet. So, exports not only reduce idle capacity, but also help declare profit and loss, ”said Som Kapoor, automotive partner, E&Y.