The government is providing a helping to the auto industry by extending Focus Market Scheme (FMS) incentives where the automobiles exported to targeted markets will get cash-incentives of up to 5%.
More than 1 million vehicles worth $2.8 billion were exported last year by the Indian car industry. Now the global market is probable to get a good increase in the 83 countries covered under FMS. The scheme is set to help Indian car manufacturers acquire a larger portion of the budding markets in Latin America, Africa and the CIS bloc and build India a global hub for small cars.
According to HMIL’s Managing Director HS Lheem, “We are looking at these markets carefully. We are the largest exporter of passenger cars from India. Most of these markets are relatively small but have posted significant growth in the past. So, we will have new strategies in place, keeping in view the government’s new policy. Hyundai Motor has decided to make India its hub for small cars and will export 50% of its production of 5.3 lakh cars in this fiscal.”
The new policy is mainly to assist in fulfilling the demands for smaller and fuel-efficient cars in the world markets. Maruti Suzuki plans to tap the market with its most eagerly waiting hatchback, the A-Star and Hyundai plans to export its most popular i10 to the US.