Auto makers in India had every reason to rejoice during this festive season. But as the festive season comes to an end so does the scrappage scheme in Europe as well. Governments of many European countries had launched the scrappage scheme during the economic crisis which offered incentives like cash discounts to the customers who opted to switch their big gas guzzling models for smaller fuel efficient ones.

Now the auto makers - especially the likes of Hyundai and Maruti Suzuki - are exploring newer markets to sustain their existing export sales. Both the companies have experienced a slump in export demand from September. Till August 2009, there was a healthy export demand but there has been a gradual decline from September. There are still existing orders that are pending which will cover the production till December.

In order to maintain the existing export momentum, companies are exploring markets like non-European markets such as Chile, the UAE, Algeria and East Africa. “We were anticipating sales in Europe to lose stream after the incentives dried and have hedged our exports by developing new markets to meet out export and production commitments,” said Mayank Pareek, executive officer for marketing and sales at Maruti Suzuki.

Hyundai is also considering markets like Australia and New Zealand to boost its export figures. “We are looking at additional numbers from the new markets. Markets such as Australia sell more than a million cars annually and New Zealand is also big. As global market are shifting towards fuel-efficient small cars, we are looking at a larger chunk in the long-term from our hatchbacks,” said Arvind Saxena, senior vice-president for marketing and sales at Hyundai Motor India.

Courtesy: www.cartradeindia.com