[mallumowgli]

Originally Posted by Jeroen

I'm really no expert on the economics of car manufacturing, but I'm a bit surprised on this. I would have thought that manufacturing in India would give a lower manufacturing cost, compared to manufacturing in say Europe.

I think you have got GTO's post wrong.

Manufacturing cost in India is lower than Europe, but selling in India (or for that matter abroad) directly to the customer will give you better margins/profits than off-take by your principals.

I would assume that at least theoretically Indian companies like Tatas and M&M would make more per unit margins than a VW or Ford for a similar priced product, in the case of exports

[karan561]

Nice thread & interesting numbers

Wonder what FIAT is upto ? Anyone have numbers of FIAT cars exported ?

Their Ranjangaon plant is easily capable of manufacturing 2L units annually.

[rajeev k]

Originally Posted by Vigkey

Coming to this gen, the quality of materials used by Hyundai has probably gone down and that is the reason, I think, Hyundai Australia has rejected Indian made cars. It could be cost-cutting and probably Hyundai went to cheaper suppliers or wanted suppliers to provide cheaper materials - We would not know.

But Hyundai Australia is now looking at Accent, the Indian Verna, with a 1.4L engine from the i20, as an alternative. This is because i20 imports from Hyundai Turkey may not turn out to be an economical proposition, due to the higher ocean freight involved.

[Vigkey]

Originally Posted by rajeev k

But Hyundai Australia is now looking at Accent, the Indian Verna, with a 1.4L engine from the i20, as an alternative. This is because i20 imports from Hyundai Turkey may not turn out to be an economical proposition, due to the higher ocean freight involved.

I thought Australia was looking for the Accent hatchback as an alternative to i20. Is that also manufactured in India?? I am not sure Rajeev. I thought they were planning to import that from elsewhere. I might be wrong though Experts can confirm.

[drsingh]

Originally Posted by veyron_head

I can understand Micra's high export ratio (8k sales Vs 76k export), because they simply aren't able to sell that car in India and they would rather make whatever money they can through exports, albeit a lesser margin.

But, check the fords! - They export almost as much ecosports as they sell in India (52k Vs 55k). I mean, there is a strong market waiting to buy your car at a much higher price than you would get elsewhere, yet they choose to make the customers wait and export it for less money. Unfathomable.

As per my understanding Ford gets various incentives from the government for bringing in the forex. I'm sure most companies are taking advantage of the falling rupee and the RBI hoarding dollars.

[rajeev k]

Originally Posted by Vigkey

I thought Australia was looking for the Accent hatchback as an alternative to i20. Is that also manufactured in India?? I am not sure Rajeev. I thought they were planning to import that from elsewhere. I might be wrong though Experts can confirm.

What I meant was, Hyundai Australia is hoping to sell Accents at reduced price to attract and compensate probable i20 buyers.

[Vigkey]

Originally Posted by rajeev k

What I meant was, Hyundai Australia is hoping to sell Accents at reduced price to attract and compensate probable i20 buyers.

Yes Rajeev. I understand that point. But my question is, Is the Accent (Verna) hatchback also exported from India or do they manufacture it locally or do they import it from a different location? I guess we are going slightly . and I guess we need not take this much further

I don't see any information on this regards in the IAB Article where I read this news.

[mail4ajo]

The major difference is with Nissan and I believe there is a clear reason. Renault-Nissan sees India as a major R&D, supply chain and export hub. That shows their lackluster interest to our local market.

It was evident when their market entry strategy was via appointing a distributor. Which mass car company having significant manufacturing investment in India would do that if they were serious. Wonder who their consultants were?? It was the dumbest idea that Ghosn had in his career, I think.

Nissan has some amazing products, they should shed the laggard attitude and improve their presence in India.

[Contrapunto]

Originally Posted by veyron_head

But, check the fords! - They export almost as much ecosports as they sell in India (52k Vs 55k). I mean, there is a strong market waiting to buy your car at a much higher price than you would get elsewhere, yet they choose to make the customers wait and export it for less money. Unfathomable.

Not so. Quite logical actually. IMO, it starts with a low confidence, in spite of the bluster (remember the Autocar video interview with Sid Patankar I think) by its India CEO of "confident of local demand etc. etc." So if you are a CEO, and you are NOT confident of local sales, what do you do? Sew up some fixed capacity of exports of course. It keeps your production lines busy, and helps defray the fixed costs. However, these exports to sister concerns happen at lower margins ( "arms-length transfer price" in accounting geek-speak). And of course, volume buyers want committed volumes. Now, hola !, to your surprise, the product IS a hit. What can you do? Renege on supply contracts? No Sir, your hands are tied. Show your back to the local customer and bank of the short term nature of public memory? Yes Sir.

As I said, its logical. This is speculative reasoning from my side, and I am no way connected to the auto industry. But I am an accountant by training, so I am fairly sure this is close enough to the truth.

It would be a supreme irony if Ford India now keeps spare capacity free for the local market, and the next gen Figo and Asipre is a flop .

I hope Ford's lines are flexible though, and they can churn out more Ecosports off the same line.

I am sure its not much different for Nissan-Renault. However, as far as I remember reading, significant export was part of their strategy from the beginning. Its just that low local sales have made exports an existential necessity.

[ckranjan]

There is no way I think ford would make more money exporting the ecosport than selling it here. But who knows. If this is the case I guess they would have export commitments which they are bound to.

Also Accent hatchback is sold in Indonesia. May be they will get it from there for Australia.

Are the cars better made in Indonesia than India?

[GetLife]

Source: Economic Times

Nissan, Ford and Volkswagen exported more cars than they sold in India in the previous fiscal, according to latest SIAM data. Hyundai was the largest exporter, followed by Maruti Suzuki and Nissan. Overall, India exported 19.3% of the 3.22 million passenger vehicles it produced in 2014-15. Here's a look...

[Bhodrolok]

The way I look at it, this at least means that there is no "dilution" of quality for the India spec cars as compared to the other brands like MS, Hyundai & Honda. So customers who do go for these brands get a better quality vehicle especially in terms of build and structure quality.

[kiku007]

Originally Posted by Bhodrolok

The way I look at it, this at least means that there is no "dilution" of quality for the India spec cars as compared to the other brands like MS, Hyundai & Honda. So customers who do go for these brands get a better quality vehicle especially in terms of build and structure quality.

Not always. I know for sure that in some cases, even the sheet metal used is different between local market and export cars.

The other extreme has happened in the case of Ecosport. It's got quite a lot of brickbats in UK for the poor quality interiors.

[volkman10]

If you think VW, Ford, Nissan and GM are laggards in India Auto sales Just see focus on export volumes and it is no brainer that their Export are higher than domestic sales volumes thus having greater factory utilization ( barring GM and Ford)






http://www.autopunditz.com/

[Karthik Chandra]

Following is the car export comparison - FY 2015-16 Vs FY 2014-15







# Hyundai is the highest exporter
# Maruti Suzuki exports the most no of models
# Ecosport constitutes 75% of Ford's export
# Micra contributes 70% of Nissan's exports
# Skoda is the only mass market manufacturer without export?
# Fiat is at the bottom both in domestic sales and in exports - capacity utilization of only 4% , only 12 units exported
# Duster exports face similar fate to domestic sales - 37 units in 15-16 as against 3.7K units in 14-15
# VW has exported an higher avg per model - 37995 followed by Chevy with 37082 and Nissan @ 35517 since they have exported only 2, 1 and 3 models respectively
# Chevy along with Ford, MSIL, Tata, VW and Mahindra have shown growth over previous year


http://www.autopunditz.com/