Latin America becomes India's largest auto export market

Latin America has overtaken Africa to become the largest automotive export market of India. Export records suggest that more than 25 % of the value of vehicles India exported in the year 2015 went to Latin American markets as compared to 21 % in the year 2014. Meanwhile, exports to Africa experienced a downfall for the first time in the last 10 years.

There are heavy logistic costs associated in transporting a vehicle from India to Latin America, which is approximately 15,000 km away. But manufacturers have been motivated to carry on their exports from India, thanks to the Government's incentives under the 'Make in India' campaign, and the country's frugal engineering capabilities that have helped automakers to manufacture vehicles at competitive costs.

Automotive Exports to Latin America were led by Volkswagen, who shipped around 63,000 vehicles to the Latin American markets. Hyundai, which is the largest auto exporter from India, shipped more than 49,000 cars to 32 countries in the Latin American region. Other automakers like Chevrolet, Ford and Suzuki too played a role in the massive exports to Latin America.

Source: ET Auto