Maruti and Hyundai exports decline due to rising domestic demand

Maruti Suzuki and Hyundai Motors, the two big names in car manufacturing noticed a downfall in the exports of its cars due to the high increase in demand in the Indian auto market in the month of October.  The month saw Maruti Suzuki India registering a significant decline in the exports by 11.8 per cent to 11,353 units as against 13,864 units sold in the same period last year.

Hyundai Motor India, one of the largest exporting car maker noticed a larger difference in the export of its cars. The car sales in the foreign countries decreased by 23.32 per cent to 17,500 cars sold as against 23,434 units sold in the same period, last year.

The reason behind this decline is the shift of attention of the car makers to the domestic markets due to festive season and a high demand experienced in the same. The car manufacturers can not afford to lose the buyers because of unavailability of the cars.

Arvind Saxena, Director, Marketing and Sales, HMIL said with concern, that, in the Indian Auto Market there is high demand of the vehicles and to fulfil the criteria, the focus shifted towards the domestic market because the company does not want to lose its customers. He also mentioned that overseas demand specially in European Market declined because of the scrappage scheme which crippled the demand of the small cars.

Many of the European nations promoted the scheme of purchasing new cars against the old ones. This step was taken to pump up the sales which was adversely affected due to the 2008 market fallout. However, it boost the sale but it could not flourish because the money invested in the scheme soon vanished.

Shinzo Nakanishi, the MD and CEO of Maruti Suzuki India (MSI) confirmed that, the company is witnessing decline in the European market. He added that, the company is doing very well in other non-European countries; the demand shot upto 60 per cent which was 20 per cent last year. He even quoted tha, MSI will continue the exports in non-European markets to cover the sales margins which was 1.47 lacs last year.

In the Indian Auto market, the two car makers HMIL and MSI had recorded good sales in October indicating a strong demand in the Indian auto market.

For Maruti, October proved to be the best selling month as the company recorded a growth of 50.32 per cent to 1,07,555 cars which was 71,551 cars last year in the same period. The achievement is bigger because it has happened first time in the Indian auto market that any company has crossed the sale of one lacs cars in a month.

HMIL sold over 34,725 cars in October as against 28,301 units last year in the corresponding period, thus registering a growth of 22.70 per cent.

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