There has been a huge change in the export target of the Indian car makers, they have amended it, not to the higher end, but downwards. And the reason for this is the European government. Yes, you read it right, the governments in Europe have exhausted cash incentives for small fuel-efficient cars.
This will be, for sure, a huge hit on the large scale export of Hyundai and Maruti Suzuki India. These companies for the last eight months have been enjoying the benefits of the generous policy. During the period of the policy, these companies were exporting in large numbers. During this period car exports jumped 32 per cent to 3.10 lakh cars over the same period last year.
In Europe, the demand for A-Star, i10, and i20 was at a highest rate. And about 80 per cent of cars that came from India saw Europe as their target market. France, Italy, Germany, Austria, UK, Spain, and Netherlands were among the countries that offered cash benefits of up to 5,000 Euros to buy new energy-efficient cars emitting lower carbon-dioxide. Even though countries such as Netherland and the UK still ready to offer incentives on new cars, most of the other countries have exhausted their budget and withdrawn benefits.
Hyundai Motor India has acted to the situation quiet promptly by cutting down its export to 40 per cent from its current 50 per cent. Hyundai has shifted part of its i20 production to its plant in Turkey during the second half of the next year.
Maruti Suzuki is still in the process of decision making. The company might drop its export percentage from next quarter as Europe has cut down on such incentives.
Indian car manufacturers have the privilege of higher margins and profits on cars sold abroad.
This will be, for sure, a huge hit on the large scale export of Hyundai and Maruti Suzuki India. These companies for the last eight months have been enjoying the benefits of the generous policy. During the period of the policy, these companies were exporting in large numbers. During this period car exports jumped 32 per cent to 3.10 lakh cars over the same period last year.
In Europe, the demand for A-Star, i10, and i20 was at a highest rate. And about 80 per cent of cars that came from India saw Europe as their target market. France, Italy, Germany, Austria, UK, Spain, and Netherlands were among the countries that offered cash benefits of up to 5,000 Euros to buy new energy-efficient cars emitting lower carbon-dioxide. Even though countries such as Netherland and the UK still ready to offer incentives on new cars, most of the other countries have exhausted their budget and withdrawn benefits.
Hyundai Motor India has acted to the situation quiet promptly by cutting down its export to 40 per cent from its current 50 per cent. Hyundai has shifted part of its i20 production to its plant in Turkey during the second half of the next year.
Maruti Suzuki is still in the process of decision making. The company might drop its export percentage from next quarter as Europe has cut down on such incentives.
Indian car manufacturers have the privilege of higher margins and profits on cars sold abroad.
Labels: Car-Export, Hyundai, Hyundai-i20, Maruti-Suzuki
