The Hindu Business Line : Hyundai emerges as second biggest exporter

EVEN as the passenger car exports crossed the one-lakh mark in 2003, there has been a change in the pecking order at the top with Hyundai replacing Ford as the second largest exporter.

With Hyundai's parent in South Korea declaring that soon the Indian plant will be the global export hub for its cars, Maruti, the leading exporter in the country, could itself see some tough competition in the years ahead. As per its roadmap, Hyundai expects to double the export revenues to around $280 million by the end of the current calendar year.

According to SIAM (Society for Indian Automobile Manufacturers), and industry estimates, during 2003, Maruti maintained its lead position with exports growing 84 per cent to 45,475 units while Hyundai's exports, surged 269 per cent to finish the calendar year with 30,433 vehicles. Ford's exports during 2003 however, fell 17.74 per cent to 23,836 vehicles compared with a year ago figures. Tata Motors was way behind but continues to be the fourth largest exporter with exports increasing nearly 64 per cent to 6,913 cars.

The sudden spurt in Hyundai's exports last year in fact hit the domestic sales with the auto giant finding it difficult to meet the demand in the local market. At one time, the backlog was between 7,000 and 8,000 vehicles as the introduction of Santro Xing increased the domestic demand. Hyundai introduced Santro Xing in May, an improved version of Santro and the sales since then increased by nearly 1,500 units per month to 8,500 - 9,000 per month.

The capacity at Indian manufacturing plant will be ramped up to 4 lakh units annually to cater to both the domestic as well as the export demand.

Currently, the production is being increased to 1.5 lakh units from 1.2 lakh units. By the end of 2003-04, the production will be increased to 2.50 lakh units. The decision to make the Indian plant a global export hub is part of the auto giant's plan to emerge as the world's top five carmakers with global sales of five million cars by the end of the current decade from the current three million units.

Hyundai hopes to capitalise on shipping costs to Europe and Latin American countries and reduce costs as well as delivery cycle times by converting the Indian plant into a global production base. Hyundai exports Santro and Accent to The Netherlands, Germany, Italy and Spain, Indonesia, Algeria, Morocco, South and North America and SAARC countries.

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