Various European countries and the UK had introduced scrappage scheme in past few months where the government offered incentives to the customers for exchanging their old gas-guzzling big cars and opt for more fuel efficient small cars. Small car exporters like Hyundai Motors India Limited and Maruti Suzuki India Limited had greatly benefited from this scheme and witnessed nearly 30-40 percent growth in their export figures.

German has already announced a curtain call for its scrappage scheme and others like the UK, Austria, and France are ready to wind up the scheme by December 2009. Now the small car exporters are reviewing non-European markets to continue with the small car exports. “While we are hoping that the European countries will announce new schemes to encourage small car exports or the existing schemes in some countries will get a further extension, we are simultaneously working with non-European countries,” said a senior official at a Delhi-based car company.

The expected export figures of Maruti Suzuki are 1.16 lakh units out of which nearly 90,000 units being exported to Europe and remaining to non-European countries. Hyundai also exported its maximum units to Germany and aims to export 2.7 lakh units in 2009-10 as compared to 2.45 lakh units in the last fiscal.

Courtesy: www.cartradeindia.com