(Image source from: finance.ifeng.com)
The United States, which was non-existent as an export market for Indian automakers, is now the third-largest export destination, cheers to the stoppage in further regions.
In Fiscal Year 2018, passenger car exports to the U.S. ballooned to $654 million from a paltry $3.52 million a year earlier, export data from the Ministry of Commerce presented.
With this, the U.S. market contributed to 9.2 percent of the overall car exports from India, the third largest.
According to industry experts, the impact of Brexit and firming commodity prices have hit India’s exports to most of the popular markets such as the UK and Europe.
Exports to the UK, which was the second-largest market after Mexico in FY17, fell by nearly half to $220 million in FY18. In the meantime, exports to Spain went down 30 percent to $137 million and to Italy by 25 percent to $263 million.
Export to Mexico, the major market for Indian automakers, raised 7.7 percent to $1.69 billion in FY2018.
The surge in the U.S exports, yet, helped in an overall development of exports for the year.
The overall car exports in FY 2018 grew 10 percent to $7.1 billion compared with $6.5 billion in the previous year.
In 2017, two American companies, Ford and General Motors started exporting to the U.S. in a giant method.
Though Ford started exporting its EcoSport from India to the U.S., GM entirely blackout India sales, using the whole production capacity for exports, chiefly to the U.S.
Ford EcoSport and Chevrolet Beat persisted the utmost exported cars from India. The U.S. remains to be the major car market in the world and Indian exports are only scratching the surface.
Being an advanced margin market, companies such as Maruti Suzuki, Hyundai, and even Volkswagen are ramping up their exports to the U.S. from India, which has turned out to be a huge automotive manufacturing center, selling to about 175 countries.
By Sowmya Sangam
