India, being a manufacturing hub for many automakers, domestic and international, has seen a steady decline with exports.
In September this year, many companies have seen a drop in double digits. Domestic sales though have seen a marginal increase. Some companies say that vehicles being manufactured here are less competitive in the international market.
Even though the government is hard on increasing local production, companies like Hyundai and Nissan have shifted exports of some models out of the country.
Some experts say that in order to bring in more manufacturers, India has to develop its infrastructure like roadways and ports, and most importantly, the tax structure.
Chennai, which was the manufacturing hub to export the Duster to the UK, has now decided to ship the Duster to the British market from Romania.
Hyundai, India's largest automobile exporter, has stopped manufacturing vehicles for exports to Europe. The Korean company now caters European needs from Turkey. Hyundai Motor India's export figures are expected to drop 25 percent, to about 1,90,000 units this year.
India's largest automaker, Maruti also saw a drop in export figures.
Abdul Majeed, an automotive expert at PwC, said, "The economy in the major export destinations of Maruti Suzuki, such as Europe and Asia Pacific, is not doing well."
A spokesperson from Maruti said the company will be at the same level as the previous year by the end of this year in terms of export figures. The Society of Indian Automobiles Manufacturers (SIAM) wants the government of India to rework the tax structure to make it exporter-friendly.