Suzuki and Hyundai keen to make India global exports hub

Suzuki Motor Corp. and Hyundai Motor Co. are keen to make India a key global exports hub. The carmakers also want India to play the role of global hub for sourcing components. The government’s incentive scheme to boost local manufacturing is influencing decisions.

Sources said the government’s intent to promote exports and manufacturing from India in the next decade has enthused the likes of Suzuki, Hyundai and other carmakers. “The COVID-19 pandemic has also shown the need to have multiple sources,” they said. “If Suzuki finally decides to make India the sole hub for production of Swift, then exports of Maruti is expected to benefit immensely. Also given its production capacity in India, financially it will make sense as well.”




Suzuki, as per various reports, plans to export more cars from India to other emerging markets in collaboration with Toyota Motor Corp. with whom it has a partnership for the Indian market since 2017. Another person said Suzuki may also make India the sole hub for some of its other products, as well as after Jimny and the new Swift. The company is also planning to utilize the incentives in the coming years to enhance exports.

In regards to Hyundai, the person said India will play a bigger role when it comes to supply of parts to destinations in South America and Eastern Europe like Brazil, Slovakia and others. He pointed out that India is already one of the regional headquarters, and post-COVID, it will become a regional hub for procurement of parts for other countries.

Also Read: We Founder Circle closes 8 investments in 100 days

Puneet Gupta, director IHS Markit, highlight that the automotive industry, globally, is on the verge of a massive transformation, and as such there would be regionalization outscoring globalization in the next decade for car manufacturers and suppliers. “Moreover, with the thrust on localization in India, and with policies like Atmanirbhar Bharat, India will have a key role to plat in Asia,” he said. “We may see India becoming a hub for more and more models, and more and more brands in the coming years. We think the production-linked scheme by the Modi government will kick off and usher in a new era of exports of cars and automotive parts from India to the world.”

The Indian government, since the outbreak of COVID-19 pandemic, has been actively pursuing companies to invest in the country as an alternative to China. In Novermber, it announced the production linked incentive (PLI) scheme of Rs 3 trillion to encourage local manufacturing. The automotive sector, comprising vehicle makers and component suppliers, will receive subsidies of up to Rs 57,000 crore.