Several car makers in India whose exports to Europe soared in the past year due to the scrappage schemes offered by various European countries, may now see a reduction in their sales. The incentives offered to those exchanging their old cars for small, fuel-efficient cars will lapse by the end of 2009. While Germany and Austria have already ended their schemes, other European countries will soon follow suit. This is expected to hit the exports of Indian companies like Maruti Suzuki and Hyundai Motor India Limited (HMIL). These companies saw a 35-40 per cent increase in their export figures in the past few months.

They are now looking at non-European markets to maintain their high export numbers, while also hoping that the scrappage schemes will be renewed by European countries. Maruti Suzuki has set an export target of 1.3 lakh units for 2009-10, much higher that last year’s 70,023 units.

Analysts, however, do not expect the company’s exports to cross 1.16 lakh units this year. HMIL too is targeting exports of 2.7 lakh units this year, as against last year’s 2.45 lakh units. Hyundai is currently India’s largest passenger car exporter.

Courtesy: www.driveinside.com