Indian small cars have been quite a hit in the markets of Europe. It has been a consequence of the scrappage scheme or the green drive by European nations.
The governments of Germany, France and the UK had asked its citizens to exchange their old cars for new fuel-efficient and eco-friendly ones.
Moreover, these governments also promised to reward people who are buying fuel efficient cars. This led for a demand for Indian small cars where big cars dominated the local markets once upon a time.
The scheme profited Hyundai Motor India and Maruti Suzuki and they became the key players in export of cars to the European market. The A-Star, i10 and i20 became the most ‘sought-after’ cars of the European market.
But, with the passage of time things have taken a different turn and Indian small cars started having trouble in the European market. The exports of these cars have started shrinking as scrappage schemes in various European markets are set to lapse by the end of the year.
Hyundai Motor India and Maruti Suzuki have witnessed their exports go off to 35-40 per cent in the last few months on the back of incentives offered by Germany, France and the UK governments.
Germany and Austria have already ended their scrappage scheme and other countries are expected to wind up their green drive programmes by December. As a result, exports to Europe start declining and Indian carmakers have started hunting for a new market besides Europe.
But Indian carmakers are still hoping against hope that the European nations will announce new schemes to encourage small car exports or to extend the existing scrappage scheme.
The governments of Germany, France and the UK had asked its citizens to exchange their old cars for new fuel-efficient and eco-friendly ones.
Moreover, these governments also promised to reward people who are buying fuel efficient cars. This led for a demand for Indian small cars where big cars dominated the local markets once upon a time.
The scheme profited Hyundai Motor India and Maruti Suzuki and they became the key players in export of cars to the European market. The A-Star, i10 and i20 became the most ‘sought-after’ cars of the European market.
But, with the passage of time things have taken a different turn and Indian small cars started having trouble in the European market. The exports of these cars have started shrinking as scrappage schemes in various European markets are set to lapse by the end of the year.
Hyundai Motor India and Maruti Suzuki have witnessed their exports go off to 35-40 per cent in the last few months on the back of incentives offered by Germany, France and the UK governments.
Germany and Austria have already ended their scrappage scheme and other countries are expected to wind up their green drive programmes by December. As a result, exports to Europe start declining and Indian carmakers have started hunting for a new market besides Europe.
But Indian carmakers are still hoping against hope that the European nations will announce new schemes to encourage small car exports or to extend the existing scrappage scheme.
Labels: Hyundai, Maruti-Suzuki, Maruti-Suzuki-A-Star
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