The attractive incentive offered to the new cars in Europe has been withdrawn indicating a slid in the export market for Indian cars. Additionally, the car makers in India have focused themselves in domestic market as a result of contented demand and expanded production facilities. Yet, some of the models, Hyundai’s i20 for example, are ideally fit for export markets. In 2009-10, the export of passenger cars was 446146 units an increase of 32.9%. Of these, Hyundai’s and Maruti’s cars comprised 433233 units which indicated a hike of 12.8% for Hyundai (285658 units) and double growth for Maruti (147575 units).
Of late, India has been given the status of a hub for small cars despite car makers finding it difficult to cope the demand in domestic market itself. These companies are keen on retaining their share in domestic market rather than on export market. Hyundai has come out with its proposal to migrate its i20 to Turkey, while Maruti Suzuki is contemplating such a proposal for it’s A-Star. All through the FY 2009-10, Maruti could secure its dominance in small car segment with 50.1% followed by Hundai’s 20.6%.
The European incentive scheme is likely to be withdrawn which will definitely hit the export market for Indian car makers. Hence the search is on for alternate markets to boost the net economy, said EO for Maruti Suzuki. Currentlly, the company is chalking out its strategy to feed the domestic market with the production capacity of 640000 units per year. This is expected to rise by 12-15% in FY 2010-11, said senior VP of Hyundai India.