German auto exports to India treble, firms eye expansion

Jan 6, 2010, 13:06 GMT

New Delhi - The German automotive industry has more than trebled its exports to India over the last five years to 200 million euros (287 million dollars), Germany's VDA auto industry association said Wednesday.

'India is an important growth market for the German automotive industry,' VDA managing director Klaus Braeunig told reporters at the Auto Expo in New Delhi.

The Indian car market is expected to have grown 17 per cent in 2009 at a time when most markets worldwide were shrinking.

In 2009, the Indian market overtook the Russian market of over 1.5 million passenger cars and analysts agree it should continue to grow in 2010, Braeunig said.

The commercial vehicles market in India also posted 12-per-cent growth in the last quarter.

German carmakers and parts suppliers are also increasing their presence in India with over 65 factories already established in the country.

'We believe India presents a huge opportunity. For (German companies) India is not just a client but represents partnership spanning several areas,' German envoy to India, Thomas Matussek said before inaugurating the German pavilion at the show. 'Both our manufacturers and our suppliers are well established in India,' added Braeunig.

Indian producers have also expanded their exports to Germany. In the first three quarters of 2009 alone, Indian manufacturers exported cars to Germany with a total value of over 215 million euros - three times as much as in the previous year.

More than 35 German companies are participating at the Indian auto show, from major manufacturers to small and medium-sized suppliers. The Auto Expo is India's largest car show and is scheduled to run until January 11.