The Hindu Business Line : Hyundai targets export earnings of Rs 2,700 cr

IN A DIFFERENT RACE: Mr V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council, flagging off Hyundai's 2,00,000th export car at a function at the Chennai port on Tuesday. Seated in the car are Mr B.V.R. Subbu (at the wheel), President, Hyundai Motor India, and Mr S.S. Yang, Managing Director. — Bijoy Ghosh

Chennai , Oct. 18

A BRIGHT red left-hand drive Atos Prime - the Hyundai Santro Xing in India - rolled up the ramp into the cavernous ship at the Chennai port today as crackers exploded and confetti showered on it. It was the 2,00,000th car being exported by Hyundai Motor India.

With about Rs 1,325 crore in export earnings in the first six months of this year, Hyundai Motor India Ltd is confident of ending the year with an export income of Rs 2,700 crore, up from Rs 1,700 crore last year. The company expects to export 95,000 cars in the year against 70,000 last year, according to company officials.

The Hyundai Motor India's President, Mr B.V.R. Subbu, pointed out that the company started exports in December 1999 when it sent 20 cars to Nepal and reached the 1,00,000th mark in October 2004. Within a year, it crossed the 2,00,000th mark.

The company would start shipping the Atos Prime to the UK in November. It exports cars to about 60 countries in Europe, Latin America, Africa, West Asia and Asia.

Of the 1,35,165 cars exported from India in 2004, Hyundai Motor India accounted for 85,000, he said and added that a majority of the company's exports were going to "the most discerning markets" of Europe and Latin America, including the Nafta (North American Free Trade Agreement) area of Mexico. This was the best possible comment on the manufacturing standards of the company and its vendors, he asserted. With exports growing - Hyundai Motor India hopes that it will be able to export two lakh cars a year once its expanded capacity is on stream - the company is confident of fulfilling its obligations under the Export Promotion Capital Goods scheme (under which imports of machinery are allowed with an export obligation of a specified value within an eight-year period) well ahead of schedule. The company's commitment is to export $800 million over eight years beginning 2001.

Participating in a function at the port to flag off the car bound for Italy, Mr V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council, lauded the company for its achievement and said India was likely to go through an era of intense collaboration with South Korea. At the highest level, there were efforts to have better interaction between the two countries.

Later, talking to reporters, Mr Subbu said site levelling for the company's expansion programme had started and civil work would begin in November. It would take 15 to 18 months for the expansion project, which would take Hyundai Motor India's capacity from 2.50 lakh units to 4 lakh units by 2007-08, to be completed. The company would aim for a 20 per cent market share.

He said the company would launch a sedan - Verna - in the second or third quarter of next year. This would be slotted between the Accent and the Elantra, and probably be priced in the Rs 7 lakh to Rs 9 lakh range.

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