The Hindu Business Line : Passenger vehicles defy export slowdown

Even as the country’s total exports were down nearly 30 per cent in value terms in April-June, automobiles (number of units) shipped out grew 1.3 per cent over the same quarter of 2008.

Hyundai Motor India and Maruti Suzuki are the major exporters that drove this trend. Most Indian cars find their way to Europe, Asia, West Asian and Latin American markets. A shift in customer preference to fuel-efficient and environment-friendly compact cars and the monetary incentive from the governments of these countries are the major demand drivers.

A Maruti Suzuki spokesperson said, “The impact of the slowdown and rising fuel prices is forcing people to shift their preference in favour of small cars, especially in Western markets. The current ‘scrappage incentive’ across Europe to replace nine-year old cars with small, fuel efficient vehicles is a big attraction for customers and has given a huge opportunity to scale up export of small cars.”

The scrappage incentive scheme lasts till December in most countries. “Once the scheme comes to an end, the volumes are likely to see a drop,” said the official from Maruti Suzuki.

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