More made-in-India cars hit the roads abroad in 2023
Made-in-India cars are finding increased global acceptance with top carmakers pushing exports to make the most of the strong cost and talent advantage available in the country.
Toyota, Volkswagen, Hyundai, Mahindra, Tata Motors, Honda and Skoda have all reported significant jumps in exports in 2023 even as market leader Maruti Suzuki hit a new high by exporting 261,700 passenger vehicles including cars and SUVs, data by Jato Dynamics show.
With the Indian regulatory norms moving towards global standards, vehicles being developed and sold here need minimum adaptation for export markets, industry officials said. India's low-cost manufacturing, arbitrage in labour costs, availability of skilled manpower, and a well-developed supplier base offer carmakers a competitive cost advantage, they said.
«With increasingly stringent regulations focusing on safety, emissions, and technological advancements, car manufacturers are investing in research, development, and innovation,» said Piyush Arora, managing director and CEO of Škoda Auto Volkswagen India.
VW exported 40,920 passenger vehicles in 2023, registering a growth of 29%, while Skoda's exports soared 431% to 1,530 units.
Addressing the Bharat Mobility Global Expo 2024 on Friday, commerce and industry minister Piyush Goyal has called on the automobile industry to raise the share of vehicles being exported to 50% of all passenger vehicles made in the country by 2030 from levels 14% currently. India's car exports stood at 671,384 units in 2023, up 4% from the last year, as per Jato Dynamics.
The boost in exports is also expected from electric vehicles, buoyed by the production-linked incentive (PLI) scheme for the automobile and parts industry.
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