Latin America Becomes the Largest Auto Export Market for India after Africa
In the year ended March 2015, Latin America emerged as the largest automobile export market for India with over 25 per cent of exports happening in Latin America.
Despite the heavy logistics costs in exporting to the farthest market in the world, Latin America has become India’s largest auto export market, with a 19% increase in sales to register $2.26 billion (Rs. 59,360 crores) sales in the region. Previously, it had been Africa, which used to be the largest importer of Indian automobiles, which is now overtaken by Latin America, while there is a drop in exports in Africa.
In the year ended March 2015, Latin America emerged as the largest automobile export market for India with over 25 per cent of exports happening in Latin America. The increase in revenue is calculated around 19% from the previous year, 2014. However, the total value of exports from India showed no growth to register a flat curve from the previous year.
Exports to Africa—used to be the largest export destination for India—reduced by about ten percent, for the first time in ten years. Volkswagen topped the export charts with 63,000 units, followed by 49000 cars by Hyundai sold to more than 32 countries of the continent. Chevrolet sold about 21000 units, while Ford and Suzuki also had a share in the Latin American export market.
India’s “Make-In-India” campaign, frugal engineering capabilities, cost-effective manufacturing abilities, government incentives, etc. have helped India achieve a huge export market in economies and markets similar to India. The growth in exports from India could help manufacturers make fuller use of their human resources and technology to cater to exotic demands and thereby benefit from economies of scale.
Only the European market slowed down drastically from 47% of total exports in the year 2010 to a mere 14%, in the current fiscal year. The decline in auto export sales in Africa from India is attributed to the economic distress in many countries of the continent.