Hyundai Motor Company, the South Korean auto maker, is planning to start the exports of its newly launched hatchback Eon to South Asia and Africa from India within a month. This attempt by the company will be a step towards compensating its declining sales in the European market, one of its biggest markets. Presently, Hyundai Motor is considered as India’s largest car exporter in the terms of sales, since the company exported half of its production to other markets until few years before.
On the other hand, the ratio of exports changed as the demand for Hyundai’s vehicle slipped in Europe because of a slowdown in economy and the debt crisis. This change in the economy of Europe forced HMC to eye new markets for its exports.
In India, the base variant of Eon, Hyundai's least priced model, costs Rs. 2,74,821 (USD 5,280). This low-priced model is ideally suited for the price conscious markets of South Asia and Africa, one of the reasons why the company is rushing towards exporting the small car.
On the success of Eon in Indian market, Arvind Saxena, Director, Sales and Marketing, Hyundai Motor India, said, “We are quite satisfied with the Eon in the domestic (Indian) market. We have been selling about 11,000-12,000 Eon cars a month in India and are quite optimistic of the model doing well in export markets as well.” However, he did not mention the exact figures which are to be exported.
The auto market of India has emerged as the export hub for this South Korean car maker. From the domestic market, the company exports several vehicles to 115 countries worldwide, including Santro, i10, i20 hatchbacks and Accent, a sedan. However, Hyundai Eon will not be able to completely recover the loss in global sales of the company. The company believes that its exports in 2012 will reduce by almost 10 per cent, amounting to 2,20,000 autos against the figures of 2,42,330 reported last year. Saxena further said, “Demand in Europe continues to remain weak.”
In the Indian market, Hyundai aims to report sales of at least 4,10,000 vehicles for 2012, which will mark an increase of 10 per cent, as compared to 3,73,709 units sold last year. Currently, Hyundai is engaged in manufacturing hatchbacks like Eon, Santro, i10 and i20 and sedans like Accent, Verna and Sonata at manufacturing unit in Chennai, Tamil Nadu. This facility of company has the potential to roll out up to 670,000 units per year.
