Exports rescue Hyundai India as domestic sales suffer slowdown

For Hyundai Motor India,exports continue to be robust. As per the sales figures of the first five months of this year,they grew by about 17% even as domestic sales were down 6%. The company reported growth in exports in all five months while domestic sales grew only in one month,that too marginally,company sources told FE. Exports in the first five months of 2013 were at 1,10,269 units compared to 94,353 units exported in the same period last year. Exports grew significantly in February and April at 37.2% and 25.7% respectively. Domestic sales during the first five months of 2013 were at 1,66,767 units compared to 176,907 units during the same period in 2012.

Interestingly,the ratio between domestic and export sales were in the ratio of 60:40 in 2012. Out of total exports in 2012,i10 clocked the maximum at 1,52,482 units followed by i20 (49,968 units). The company expects to end 2013 with strong double-digit growth on the export front and sees domestic growth at 2-3%,based on the anticipation of a normal monsoon and the ensuing festive season in the second half of 2013.

R Sethuraman,director (finance and corporate affairs),HMIL,told FE,“Hyundai’s flexibility to switch between domestic and export production helps in offsetting the downturn in one market and adjusting production to meet greater demand in a particular market.”