Monday, 28 May 2012

Carmakers bag big trade purchases due to poor rupee

A weaker Indian currency has strengthened the fortunes of Indian car manufacturers with the help of some big-ticket export orders.

Prominent car manufacturers like Maruti Suzuki, Hyundai and Nissan, who have been witnessing sluggish demand at home, now have their order books completely occupied for the upcoming two months. Toyota Motors is planning to enter the export market as it is wooed by the strong export margins.

Mr Arvind Saxena,Hyundai Motor India director (marketing & sales), said, “Europe still remains a stable market and new markets in South East Asia are translating into fresh orders. We are getting more benefit with rupee depreciating and our exports orders have been robust so far.”

India, which has been exporting hatchbacks to Europe, Latin America and the West Asia, has witnessed exports jump 16% to 501,794 units during 2011 over the previous year. India enjoys advantage of poor labour cost, the rupee depreciation has further lead to the surge in the bargaining power and volumes, he said.

Maruti is recovering from the four-month industrial strike at its Manesar plant has received orders for 4,500 more cars from the international distributors. Mr Shashank Srivastava, Maruti's Chief General Manager (marketing), said, “Our main export models like A-Star, Alto, WagonR and Estilo are all sold out till March. The benefits arising out of favourable currency have come as a big boost for exports.”

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