Hyundai setting new standards in exporting automobiles

Hyundai setting new standards in exporting automobiles

India is already considered as a major source for auto parts outsourcing. However, the latest news in is that we are making news even in the export market of completely built cars. Hyundai Motor India is a prime example of what can be achieved if the goals are set right. The company could break the Rs 2,500-crore level (including 9-10% of duty drawbacks) this fiscal, up 20% over last year.

This would make the South Korea based automaker as the top exporter of goods in India outside the metals and oils sector for the second year in a row. The number of cars they exported has grown from 82,093 units to 85,000 – 86,000 units. However, much of the rise in the revenues is generated from change in composition and export values.

They are mainly targeting the European market from their manufacturing base in India and are also exporting body kits to Russia and Turkey. They have setup an example for the other automobile companies in India as their export sales make up over a third of its total production in India.

HMI president BVR Subu said in a statement: “Euro denomination exports have proved to be more profitable for Hyundai because the currency is strong; hence it makes more sense for us to grow our exports in these regions. If auto exports are to do well in the country, there is need to rationalize port and wharfage charges. They are too high and impact our profitability. In fact, the ports have made more money from our exports than we have done. Port charges should be only for importers and not exporters.”

The prime competition in the Indian market Maruti on the other hand exported just 48,899 units, which forms less than 10% of their total production in India. However, this might change next year with the company launching their world car Suzuki Swift in India this month. India is expected to become a major hub for the production of this particular model and the company is going to export this in large quantities to European countries.