In September, Ford Motor Company made headlines by announcing plans to reopen its Chennai facility, which had ceased operations in 2021, primarily focusing on exports. While specific details remain undisclosed, reports suggest the automaker is exploring opportunities in the light commercial vehicle and pickup markets, considering both internal combustion engines and electric variants. Additionally, potential collaborations with other manufacturers, including Volkswagen, have surfaced, although Ford declined to comment on these speculations.
This announcement by Ford reignites discussions about the challenges faced by American and European carmakers in the highly competitive and price-sensitive Indian automotive market. It also emphasizes India’s growing significance as an export center for international automotive brands. From Maruti Suzuki, which has been in the Indian market since 1981, to Kia Motors, the latest entrant since 2017, exports are becoming an integral part of their strategies and revenue models. Traditionally, Indian exports targeted African and Latin American markets; however, Japanese companies like Honda and Maruti, with Suzuki Motor Corporation holding 58% equity, are now sending passenger vehicles back to Japan, challenging the perception that Indian products aren’t suitable for developed markets.
In 2024, India exported approximately 670,000 cars, representing 15 to 16% of total sales, according to Hemal Thakkar, senior director at Crisil. The composition of these exports has evolved from over 50-60% hatchbacks to 40% SUVs today.
Maruti Suzuki, the leading exporter of passenger vehicles in India, has been shipping vehicles to Europe since the late 1980s, though initially in modest numbers. “To achieve the ambitions of Prime Minister Modi’s Viksit Bharat program, we recognize that domestic demand alone won’t suffice. India must capture a larger share of the global market through increased exports,” said Rahul Bharti, executive director of corporate affairs at Maruti Suzuki India Limited (MSIL). The company’s exports have surged threefold over the past four years, with plans to triple this volume again by 2030-31, targeting 800,000 units.
Bharti emphasizes that robust export performance reflects global competitiveness in technology, cost, and quality, assuring Indian consumers of vehicles meeting international standards. Currently, MSIL exports 17 of its 18 models to around 100 countries, with major markets in Latin America, Africa, Southeast Asia, and the Middle East, and are also expanding into Europe and Japan.
Nissan Motor India, focusing on exports as a crucial part of its strategy, aims to sell 100,000 units abroad as part of its mid-term plan. It has introduced the Magnite in both domestic and international markets and is preparing for further launches, including an affordable electric vehicle. The new left-hand drive Magnite will be sent to over 45 countries, enhancing India’s role as a significant export hub.
According to Vatsa, managing director at Nissan Motor India, the Indian consumer’s understanding of technology and demand for features positions India favorably in the global market. Nissan’s Sunderland plant in the UK has been a major export center, but India is rapidly emerging as a critical hub for the AMIEO (Africa, Middle East, India, Europe, and Oceania) region.
