India to become compact-car export hub

All credit goes to Tata Motors who produces Tata Nano, the world's cheapest car. Several leading car makers are considering India as their small-car export hub. The main reason of this switch over is low cost and positive growth during global slowdown. The auto companies who are very interested in this regard are Hyundai Motor, Toyota, Ford Motor and Maruti. India's leading car maker, Maruti Suzuki, has invested $300 million on creating a small-car research and development centre here. Hyundai Motor also intends to make the country global base for manufacturing and exporting compact cars. On the other hand, world's largest auto maker, Toyota, is developing a small car for India and it aims to make the country its compact car hub by 2012. Similarly, Ford Motor is to invest around $500 million to double capacity at its India plant, which will not only produce a compact car but become a strategic global production hub. For the first four months of 2009-10, domestic car sales rose nearly 10 percent from a year earlier. That potential offers an extra attraction to base export operations in Asia's third-largest economy. As the Indian auto market grows, production facilities would already be in place. Mainly, General Motor and Hyundai are exporting cars and aim to increase the export numbers in the coming months.Tata is gearing up to launch its Tata Indica Vista IGNIS very soon.

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