Global carmakers set sights on India as possible export hub
What's the story
India's emergence as the world's third-largest car market can be attributed to the significant rise in domestically produced vehicles. This has attracted global manufacturers, who are drawn to the country's competitive costs and skilled workforce. The increasing demand for affordable, high-quality vehicles has intensified competition worldwide, making India an ideal market for companies seeking international expansion.
Details
EVs key to the export surge
The country's focus on electric mobility further bolsters its position as a leading export hub. India's push toward electric vehicles (EVs) is in line with its emission reduction goals, encouraging manufacturers to invest in EV development for both domestic and international markets. This presents additional opportunities for car companies to capitalize on India's exporting potential and solidifies its role as a strategic export hub.
Steps
New factories are being built to boost growth
To fully harness this potential, car manufacturers are expanding their production capacities and establishing new plants in India. This strategy not only addresses the growing domestic demand but also enables them to cater more efficiently to international markets. As a result, India's potential as an export hub for car manufacturers is set to grow, benefiting both domestic and overseas territories.
Information
A look at India's export figures
In FY23, India saw a 14% surge in auto exports with 6,62,891 units shipped. Japan exported 3.37 million cars during the same time, while Indonesia shipped a total of 5,12,448 vehicles, up 70% year-on-year.