Hyundai mulls higher exports on domestic woes

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Chennai, Jul 15: Expecting sluggish growth in the domestic market due to high interest rates and high inflation, Hyundai Motor India Limited (HMIL), India's second largest passenger-car manufacturer, is mulling an increase in the proportion of exports from 40% to 45%.

And if the condition worsens, exports from the auto giant might overtake domestic sales. "If the market scenario worsens, we may look at inverting the current export and domestic ratio. In the near term we are looking at exporting 45% of our total production in India," Ashok Jha, president, HMIL, said.

According to the Society of Indian Automobile Manufacturers (Siam), Hyundai exported 1,44,439 units, which includes models Santro, Getz and i10 in the compact-car segment and Accent, Verna in the mid-sized segment in 2007-08 as against 1,15,525 units in 2006-07, registering a growth of 25.03%.

The company will also launch a small-car 'i20' by the end of 2008 and this is expected to complete the its product portfolio in the compact-car segment. "The i20 will be launched by the end of 2008 and will complete our compact-car range," Heung Soo Lheem, managing director, (HMIL) said.

"With the launch of these models, the contribution from our Indian operations to the overall global sale will increase to 15% in a couple of years from the current 12%," Lheem said while pointing out that Hyundai has become the fifth biggest carmaker in the world.

The Korean automobile giant had earlier announced its plans to launch a small car in India with a price tag of $3,500 (about Rs 1.45 lakh) by 2011, and this is currently under development at its research and development centre in Korea. By August, Hyundai is planning to launch a LPG variant of Santro. The car, powered by a 1,086cc engine, is currently available in CNG, diesel and petrol versions .