Indian car exports surge 57 per cent in 2008-09

11 April 2009

Even as recession-hit international automobile majors are struggling to maintain sustainable sales figures, car exports from India surged by a remarkable 57 per cent year-on-year in the recently-ended fiscal 2008-09. Led by Hyundai Motor India Ltd and Maruti Suzuki India Ltd, India-based car makers shipped a record number of vehicles, mainly to Europe.

Exports grew to 331,539 cars from 211,112 a year earlier. Exports had grown by a comparatively meagre 8.9 per cent in the previous year (2007-08), according to figures released by the the Society of Indian Automobile Manufacturers.

The country's largest exporter, Hyundai managed an export growth rate of 63 per sent at 235,345 units, compared with 144,440 units in the year-ago period. Domestic market leader Maruti Suzuki was a distant second, registering 32.58 per cent growth in overseas sales at 68,834 units.

Maruti and Hyundai launched new models in the past year, including Maruti's A-Star and Hyundai's i20, targeted at the European market, which is cited as one reason for the robust export numbers. The weakness of the rupee, which fell more than 20 per cent against the dollar in the just-ended fiscal year, also helped by making Indian cars cheaper abroad.

Export growth was also robust in the two-wheeler category, which registered 22.50 per cent rise at 1004,174 units as against 819,713 units in the previous financial year.

However, with the global economy slowing, demand from Europe may not hold up, analysts said. Meanwhile, lending rates in India are at nearly five-year highs as banks, worried about bad loans, hold back from financing vehicle purchases.