Indian carmakers step up exports to offset low domestic sales of petrol cars

A renewed effort among auto makers in India to boost export of petrol engines and cars is taking place in lieu of the continuing low demand in the domestic market and the impact of foreign exchange fluctuations. The country’s largest passenger carmaker Maruti Suzuki India, Honda Cars India, Ford India, Toyota Kirloskar Motor Pvt Ltd (TKM) are all exporting their respective brands to other countries in Asia and Africa. It is estimated that 155,000 units of petrol vehicles are in stock in the companies’ sales networks.
While diesel vehicle sales increased 42% between April and November this financial year, petrol vehicle sales fell 20% in the same period, over a low base of petrol car sales in 2011.
“For every manufacturer, the aim is always to boost volumes by increasing sales both in the domestic and overseas markets. Besides, over the last two years, the (Japanese) yen has strengthened by 50%, while the dollar has appreciated by nearly 20%, which has raised substantially our import bills,” said a senior executive at Maruti Suzuki, who did not want to be named. (December 28, 2012)