Passenger vehicle exports from India are expected to maintain the positive momentum due to robust order book amid production constraints on account of chip shortage. Strong exports provide better margins at a time when the domestic demand is constrained.

PV exports saw a revival in the post-second wave period. During April-December 2021,, total PV exports grew 46 per cent to 4.24 lakh units compared to 2.91 lakh units in the same period last fiscal. Car exports grew to 275,728 units (190,592 units), while export of SUVs rose to 146,888 units, from 99,701 units.

Though FY22 is unlikely to see an export volume level of about 7 lakh units (average number) achieved per annum during FY17-FY20, there will be a substantial improvement over FY21 despite challenges.

Maruti numbers

During the first nine months of the current fiscal, India’s largest PV exporter Maruti Suzuki shipped 169,922 ‘Made in India’ vehicles, the highest ever in a nine -month period. In the calendar year 2021, the company exported 205,450 vehicles, the highest ever in a calendar year. Its top five export models include Baleno, Dzire, Swift, Spresso and Brezza.

Rahul Bharti, Executive Director-Corporate Affairs, Maruti Suzuki India Ltd(MSIL), said: “This year (fiscal) particularly has been good in terms of exports. We were, fortunately, able to meet the export demand as the specific electronic chips shortage did not affect export models much. The electronic components shortage situation is gradually improving and we would strive to meet the demand in the domestic market as well.”

He explained that the company decided to mount a strong focus on exports two years ago. In addition to the ‘Make in India’ vision, the strong support of the parent Suzuki Motor Corporation helped MSIL expand the export product portfolio and reach out to more geographies with a ramped-up distributor network. Exports are expected to make up about 14 per cent of Maruti’s sales going forward, up from 7 per cent in the past two fiscals.

“Though it is always difficult to predict, as we see the situation today these export levels seem to be sustainable in the future also,” said Bharti.

Hyundai Motor India Ltd, the second-largest PV exporter from India, has strong export orders and expects to sustain the growth. It shipped 100,059 units during April-December 2021 against 74,021 units in the same period last fiscal, an increase of 35 per cent.

French carmaker Renault said it hopes to continue the strong export performance in the current year. “Demand for all Renault cars, especially Kiger remains strong in the markets where we are currently exporting to. We are working our best to maximise production and minimise the impact of supply constraints. Reaffirming our commitment to the ‘Make in India’ campaign, we have recently crossed the 1 lakh exports milestone,” said Venkatram Mamillapalle, Country CEO & Managing Director, Renault India Operations.

Renault exports its ‘Chennai-built’ cars to 14 countries across SAARC, Asia Pacific, Indian Oceanic, South Africa and East Africa region.

Other car makers such as Kia Motors, Volkswagen and Nissan have been recording strong growth on the export front, helped by the launch of new models and penetration into more markets.

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