India is exporting more cars than ever before with Hyundai and Maruti leading the way

Cars that are mid-sized, SUVs and engine are being exported from India like never before. The country has emerged as a major export base as it builds on the image as a key supplier of small cars. In Mexico, Vento turns out to be the topmost selling model for Volkswagen. According to the experts, starting next year, Hyundai motors is considering exporting its new generation mid-size Verna. Creta SUV from Hyundai’s Chennai however, has already got its acceptance abroad.

According to experts, big brands like Chrysler and Land Rover, too, are giving a thought to providing the other right hand drive markets with vehicles exported from India. Ford Motors is going to start exporting its EcoSport SUV to North America in next year, while Baleno from Suzuki is already being supplied to Japan by the company’s Indian unit, Maruti Suzuki.

Gaurav Vangaal, senior analyst for forecasting at IHS Automotive told the Economic Times, “With Indians increasingly opting for bigger cars and local quality standards similar to those abroad, it has become easier for manufacturers to pick models for exports from India. Exports allow them to post better operational performance domestically due to combined volumes of domestic (sales) and exports.”

India has already been a key exporter of the likes of Hyundai's Grand i10, Ford Ka and Chevy Beat. For some global automakers, such as General Motors and Nissan Motor, exports have helped maintain their revenues despite weak demand within the Indian market. Hyundai is looking forward to exporting 11,000 units of next gen Verna from India in 2017 and take it upto 70,000 by 2019-2020, said three component suppliers for the local unit of the South Korean carmaker. Manufacturing from India will release some load off the Korean operation’s back, which will allow them to increase the production of Elantra and Sonata which are in demand in its home market.

"We are planning to make a new version of the Verna next year in the second half. India is one of the countries which will see increase exports of Verna," Hyundai Motor India managing director YK Koo told ET. "Volume for Verna exports is yet to be finalised, but it will be significant," he added.

The Hyundai Creta already has a one- to two-month waiting period in overseas markets, Koo said. "We are exporting 5,000-6,000 units a month, the numbers of mid-size cars will go up with new model."

Not just the cars, vehicle makers are also planning on sourcing engines from India. Ford India is all set to start exporting of 2- and 2.2-litre Panther engines from its factory at Sanand in Gujrat from 2017-18.

20% of total exports of 6.5 lakh vehicles in fiscal 2016 were accounted by exports cars longer than 4 meters which is the double of what it was 3-4 years back.

Mid size will account for almost 30% of the total India’s car export, if vehicle like Toyota Etios and EcoSport are included

Experts say though the domestic market share for many MNCs has remained modest, it is the export strategy which has help them justify big capital investments and break even in India with economies of scale.