Ford becomes India’s largest Car Exporter

Ford, Nissan, and Volkswagen ship more of their India-manufactured cars to overseas markets than what they sell within India.

Michigan-based Ford has two manufacturing units in the country: at Chennai in the southern state of Tamil Nadu and at Sanand in India’s western state of Gujarat. It has overtaken Korea’s Hyundai in Fiscal Year 2018 to become the largest exporter of cars from India.

In the first nine months of the current financial year (from April 2017 – March 2018) Ford shipped over 134,000 units,  12 percent  more than the previous year.

For the same period, German auto maker Volkswagen exported more than double the number of units it sold in India, while Japanese car maker Nissan shipped more than 46,000 units to export destinations.

Company # Cars Sold in India

(Apr – Dec FY ’18)

# Cars Exported

(Apr – Dec FY ’18)

Ford 62,554 134,575
Nissan 38,928    46,502
Volkswagen 34,979    71,667
GM  Nil    60,707

General Motors decided to stop local sales of its cars in May last year and announced plans to focus exclusively on the export market. The company has shipped over 60,000 cars from India for the same period, and is now the fifth-biggest exporter of cars from the country.

Ford Ecosport

February 12, 2018   No Comments

Panasonic Aims to Make India an Exporting Hub

Japanese electronics major Panasonic is strengthening its manufacturing footprint in India. End January, its subsidiary Panasonic India inaugurated its first refrigerator-making factory in the country. Set up at an investment of $20 million,  with an annual production capacity of 500,000 units, the facility is located in India’s northern state of Haryana where the company is already making washing machines and air-conditioners.

Tetsuro Homma, CEO of Appliance Company and senior managing executive officer, Panasonic Corporation, said, “India is the fastest growing market for us. The company has a very clear strategic intent to enhance its appliance portfolio for which India has been identified as a developmental hub. We believe India has the potential to become our offshore delivery center for R&D and exports. We believe it can serve as a regional hub for markets such as West Asia and Africa.”

Panasonic Inaugurates India Innovation Center

February 5, 2018   No Comments

Mauritius Continues to Be Largest Channel for FDI to India

Based on a census that it undertook, a report by India’s central bank, the Reserve Bank of India, said, “Mauritius was the largest source of foreign direct investment (FDI) in India (21.8 percent share at market value) followed by the U.S.A., the U.K., Singapore and Japan, while Singapore (19.7 percent) was the major overseas direct investment destination (ODI), followed by the Netherlands, and the U.S.A.” The census yields comprehensive information on the market value of foreign liabilities and assets of Indian companies arising from FDI, ODI and other investments.  Historically foreign investors who expect capital gains from the ultimate sale of their stake prefer to invest via this tiny island nation due to a favored tax deal between India and Mauritius.

Reserve Bank of India logo

Other key findings of the census were:

  • Of the 18,667 companies that participated in the census, 17,020 had FDI/ ODI in their balance sheets in March 2017
  • “96 percent of the responding companies were unlisted in March 2017 and most of them had received only inward FDI; unlisted companies had a higher share of FDI equity capital compared to listed companies”
  •  Over 80 percent of the 15,169 companies that reported inward FDI were subsidiaries of foreign companies (single foreign investor holding over 50 percent of the total equity)
  • Non-financial FDI companies had a much higher share in total foreign equity participation compared to financial FDI firms.
  • “The ratio of market values of inward to outward direct investment, increased to 4.3 in March 2017 from 3.6 a year ago; equity participation accounted for 94 percent and 79 percent shares in inward and outward FDI, respectively,”
  • The manufacturing sector accounted for nearly half of the total FDI at market prices; information and communication services and financial and insurance activities were the other major sectors that attracted FDI.
  • Total sales, including exports, of foreign subsidiaries in India increased by 18.7 percent during 2016-17 whereas their purchases, including imports, increased by 20.1 percent.

January 24, 2018   No Comments

India, Japan to Collaborate on AI, Robotics for Defense

India and Japan will work together to introduce artificial intelligence and robotics in the defense sector by the end of January. Kentaro Sonoura, national security adviser to Prime Minister Shinzo Abe, said, “You should expect to see increased bilateral cooperation to develop unmanned ground vehicles and robotics.”

The Center for Artificial Intelligence, India’s leading lab that works on AI, has been working on robotics since last year and it said that it will equip India’s armed forces with a host of robots that can work as a part of any team, much like the soldiers.

Graphic of a robot soldier

Japan is aiming for a “free and open Indo-Pacific.”  This was a coming together of Japan’s Indo-Pacific policy and India’s Act East policy. “We need to share the importance of rule of law and freedom of navigation among related countries. The next step is infrastructure development based on global standards, so that connectivity among countries is increased. The third step would be maritime law enforcement and disaster management that would ensure the stability and prosperity in the Indo-Pacific region,” he said.

January 22, 2018   No Comments

India-Made Jeep Compass Now Sold in Japan, Australia

 Fiat Chrysler Automobiles, India, shipped its first batch of 600 right-hand drive units of the made-in-India Jeep Compass from the Bombay Port Trust facility to Australia and to Japan. The SUVs are produced in the company’s Ranjangaon factory situated near the city of Pune, and have over 65% localized  Indian content. The company will ship more of these cars to other international markets through the ongoing quarter of 2017.

FCA Jeep

Commenting on the defining moment, chief executive of Fiat India Automobiles Private Limited Gurpratap Boparai said, “Our resolve has been to ensure timely delivery of a world-class product, made in India, to Indian as well as our international customers.”

Kevin Flynn, president and managing director of the company said, “We are looking forward to a strong 2018 when production will be at full pace delivering on target domestic and export numbers,” reports IndianCarsBikes.in.

December 7, 2017   No Comments