Strengthening of Indian Rupee has made the Korean Car Giant, Hyundai to cut exports targets from India. Hyundai India currently exports its cars to Latin America, Afria and other Asian countries. It has a manufacturing hub in Chennai and is one of the largest auto exporters from India.
“We had planned to export 2.65 lakh units in 2008. But the
strong rupee and a weak dollar has forced us to cut the shipments to 2.12 lakh
units”, says Hyundai India MD, HS Lheem. The strengthening of rupee against the
dollar has forced the company to reduce its exports due to reduced realization.
However, Lheem further adds that the company also foresees
growth in the manufacturing plants but seeks support and concessions from the
Central government. Concessions would encourage higher exports from India as the
company strongly adheres to the theory of “India Small Car Hub”.
The rail link is also much awaited in Chennai which would
solved the transportation problems arising due to congested networks. Currently,
it faces the problem of transporting its car to the Chennai port as its can be
done only during limited hours from 10 pm to 8 am. This rail link was promised
by the government at the time of signing MoU, a decade ago.
