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Indian Car Exports shot up 57% in FY 2008-09
Apr 29, 2009

Fiscal 2008-09 saw significant increase in India's car exports due to decline in value of Indian currency, launch of new models and increasing popularity of small cars in abroad.

As per the figures from the Society of Indian Automobile Manufacturers (SIAM), Indian car exports recorded a substantial YOY growth of 57% in FY 2008-09, as reported by domain-b.

In FY 2008-09, 331,539 cars were exported from India as compared to the export of 211,112 cars in FY 2007-08.

Hyundai, the largest car exporter of India, exported 235,345 Units and thus, recorded a growth of 63% in exports against 144,440 Units in FY 2007-08. Maruti Suzuki, the market leader in India, stood at the second spot, recording merely 32.58% increase in its exports which were at 68,834 Units.

The prime reason for the car exports from India was the launch of new models by the car makers. In 2008, Hyundai and Maruti introduced their new models which include Hyundai's i20 and Maruti's A-Star. The decline in the value of rupee that declined over 20% in FY 2008-09 made the Indian cars relatively inexpensive in the overseas market; thereby, further boosting the car exports from India.

Additionally, as gloomy economic conditions and inflating fuel costs are taking toll on the existing models, car manufacturers in the overseas markets such as Europe and Latin America have increased sourcing orders for small cars from companies in India.

In the meantime, Indian two-wheeler segment also saw substantial increase in exports. In FY 2008-09, total 1,004,174 Units of two wheelers were exported, representing an increase of 22.50% from 819,713 Units in FY 2007-08. As a result, total vehicle exports from the country during the year surged by 23.60% at 15,30,660 Units whereas in FY 2007-08, the export figure stood at 12,38,333 Units.

According to a Research Analyst at RNCOS, "The domestic automobile market in India is relatively weak as compared to its export market. People abroad are opting small cars in the phase of recession, high interest rates and liquidity shortage. So, the car manufacturers should focus predominantly on the export markets, using India as a manufacturing base. Moreover, it will reduce the risk of loss."

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