The Hindu Business Line : Exports overtake domestic sales for auto majors

Mumbai, April 4 The decision of carmakers Maruti Suzuki and Hyundai to make India their export hub has been vindicated by the fact that the rate of export growth outpaced that of domestic sales.

For the home-grown auto major Tata Motors, the overseas sales of trucks and passenger cars have helped maintain a positive growth. Tata Motors’ domestic sale is almost flat while exports grew by three per cent.

Hyundai, with annual export of 1,44,442 vehicles, remains the country’s largest car exporter. Export contributes about 40 per cent of the total sales of Hyundai Motors India, which is considered the small car export hub of the Korean carmaker.

“The recent capacity expansion and the launch of a new car have propelled our exports in the recent months. There is good demand for small cars in overseas markets. The cost-effectiveness in terms of labour, infrastructure and component sourcing make export from India profitable,” said Mr H.S. Lheem, Managing Director, Hyundai Motors India Ltd.

“Europe is the major market for us. We are doing well in Latin America, West Asia and South Africa as well,” he said. Hyundai India, which set an export target of 2.12 lakh for 2008, has already got 60,000 orders from abroad for its latest model, for delivery till May. “We have started taking orders for June. It will be more than 20,000,” said a company official. The company hopes to increase the number of countries to which it exports cars from 73 to 90 this year.

Maruti Suzuki which exported 53,024 units during 2007-08, said this was the highest ever figure in the company’s history. Exports grew by 34.9 per cent during the year. Maruti’s export strategy is to replicate its success in India. “We focused on developing countries. We have identified newer markets, the economic condition of which is similar to that of India a decade ago. For example, countries like Indonesia and Algeria,” said a top Maruti official.

“We are developing non-European new markets,” he said. In line with its export plan for the medium term, Maruti Suzuki tied up with the Adani Group for a mega car terminal at Mundra Port. The terminal would be operational by the year-end. Maruti Suzuki will make an initial investment of Rs 40 crore for the facility.

Though the total export figure is just a little more than 12,000 for SUV maker Mahindra, it translates into a 54 per cent increase in its overseas sales. The Scorpio forms three-fourths of the company’s total exports.

Related Stories:
Hyundai exports touch half a million
Maruti’s exports cross half a million
M&M plans doubling exports every year

More Stories on : Automobiles | Exports & Imports

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