With the European countries urging its citizens to exchange their old cars for new cars that are fuel-efficient and eco-friendly, Indian small car manufacturers are eyeing the small car market in the European countries.
Many countries in Europe have come up with incentives to its citizens urging them to discard their old cars in favour of the new fuel efficient ones. The Government-sponsored incentive scheme is garnering huge demand for the small cars.
Hyundai Motor India recorded its highest export growth rate last month followed by Maruti Suzuki. The 11-year-old subsidiary of Korean carmaker Hyundai Motor recorded a 33% growth in exports in June to 24,241 cars over the same month last year.
On a sequential basis, exports increased 21% in June from 20,125 cars in May. Maruti's export rose 176% to 13,336 cars last month over 4,836 cars sold overseas in the same month last year. Month-on-month export increased 47% from 9,087 cars in May this year.
Small cars such as A-Star, i10 and i20 are in huge demand in the European market as these fuel-efficient models emit low volumes of carbon dioxide.
Hyundai's production schedule for exports is booked for the next two months and the company is now looking at bagging orders for September and beyond, helping the company post handsome profits.