Do More With Reuters
Partner Services

Auto firms see India as small-car export factory

Fri Sep 4, 2009 4:01pm IST
 
Email | Print | | Single Page
[-] Text [+]

By Janaki Krishnan

MUMBAI (Reuters) - Global carmakers are lining up to make India, home of Tata Motors' Nano, the world's cheapest car, a base for their export operations as they try to cut costs and move to compact, fuel-efficient vehicles.

South Korea's Hyundai Motor, which already exports close to half of its Indian output, wants to make India its global hub for making and exporting small cars.

Toyota, the world's largest auto maker, is designing a compact car for the Indian market and plans to make the country its small car hub by 2012.

And Ford Motor is investing about $500 million to double capacity at its India plant, which will not only produce a compact car but become a strategic global production hub.

Japan's Suzuki Motor Corp has a strong foothold as majority owner of leading Indian carmaker Maruti Suzuki, which is spending more than $300 million on building a small-car research and development centre in the country.

The company exported 54,707 cars in the five months from April, the start of the 2009/10 fiscal year, more than double its shipments for the same period a year earlier.

"Apart from the obvious cost advantages, India has a good base of component suppliers who come with the experience of having supplied to global car companies," said Deepesh Rathore, auto analyst with IHS GlobalInsight.

"India is in a strong position at the moment to be an exporter."   Continued...

Construction workers work at a site as the sun sets in Chandigarh in this December 2006 file photo. REUTERS/Ajay Verma
Economy seen growing at 7.2 pct in FY10 - govt

The forecast reinforces the possibility that the government may start to unwind its fiscal stimulus in the budget.  Full Article 

Photo

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives
Greece's Finance Minister Papaconstantinou addresses reporters during a news conference in Athens, January 20, 2010.
Eurozone agreed in principle to aid Greece

Euro zone countries have decided in principle to help debt-stricken Greece, a senior German ruling coalition source said.  Full Article 

FROM THE MARKETS

After the Bell
After the Bell

Reuters Money's Kshitij Anand updates you on the movers and shakers of the Indian stock market.  Blog 

SHOWCASE

"Claw Back" Pay
"Claw Back" Pay

Banks and regulators hope that threats to "claw back" pay if trades later blow up will rein in risk taking on Wall Street.  Full Article 

 
James Saft
Blaming Asperger's

COLUMN - Did Asperger's help cause the financial crisis?  Full Article 

 
Going Global
Going Global

With Volvo, Chinese eye M&A abroad to win at home.  Full Article 

 
Delivery Woes
Delivery Woes

Boeing 787 delivery schedule could slip - experts.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage