Nissan acquires number two spot in car exports
Nissan Motor India Pvt Ltd. grabs the second position in terms of exporting its cars to overseas market, while the top position is still acquired by Hyundai Motor India Ltd. In the lucrative business of export, Nissan moved past the export of Maruti Suzuki to grab the second position.
Nissan's Sunny and Micra were the main exported cars that leave behind the exports of A-Star, Alto and Swift Dzire. In the financial year 2013-14, Nissan exported more than 1.16 lakh units- an addition of 18% while the Maruti Suzuki shipped 1.01 lakh units. Moreover, the South Korean manufacturer Hyundai managed to be on top with exports figuring more than 2.33 lakh units.
Now what made Nissan to be on number two position is that the manufacturer exports more than 85% of its total production from its Chennai plant while Maruti Suzuki will now focus more on emerging markets as their European shipment would be handled by Thailand subsidiary. Developing countries such as India and Thailand offer low-cost manufacturing when compared to Europe. Therefore, manufacturers export their products rather than manufacturing the same in the developed countries with high labour cost. Moreover, markets like India face issues like the low labour cost and minimal facilities which lead to frequent strikes and shut down of manufacturing facilities, which is a drawback for the overall production of the company's manufacturing unit.