The damp winds of change are blowing strong for car companies who make use of India as an export base and it appears that they have been caught out in the open without any shelter. What was once their largest market for small ‘Made in India’ cars has now stagnated making manufacturers look beyond Europe to fill their export quota log books. In this regard they have been pressing the Centre to ink FTA (Free Trade Agreements) with various developing nations.
The SIAM which represents most of the manufacturers in India has been pressing the Centre to enter into FTAs with countries in Central America, South America, Africa and the Middle East - all markets with significant potential to consume India’s exports. The Apex body has also identified Africa as the largest consolidated market for India made cars.
The SIAM has also been pushing the government to formulate policies that would focus on exports which in turn would promote the ‘Made in India’ campaign of the current ruling government.
This step by the SIAM to shore up the business of its members is one that we expected when the stagnation of the vehicle market in Europe became evident a few years ago. There is much potential from the developing markets for at least another 15 years to 20 years and they are likely to go through the same development cycle that we (India) are in currently.
