ET reported that Indian carmakers are reaping the benefits of the incentives offered by the governments of Germany, France and the UK to people exchanging their old cars for new fuel efficient ones.
The country’s largest car exporter, Hyundai Motor India recorded its highest export growth rate last month while Maruti Suzuki is raising its export target, as the scrappage policy in Europe that gives EUR 750 to EUR 5,000 to people buying fuel efficient cars has led to an increase in demand for their small cars.
The 11 year old subsidiary of Korean carmaker Hyundai Motor recorded a 33% growth in exports in June to 24,241 cars over the same month last year. On a sequential basis, exports increased 21% in June from 20,125 cars in May.
However, Maruti’s export increased 176% to 13,336 cars last month over 4,836 cars sold overseas in the same month last year. MoM export increased 47% from 9,087 cars in May 2009. 3 small cars A Star, i10 and i20 are the biggest grosser in Europe as these fuel efficient models emit low volumes of carbon dioxide per kilometer.
Mr Arvind Saxena senior VP (sales & marketing) of Hyundai’s said “Exports have jumped as monetary incentives for fuel efficient and eco-friendly cars low on emission have gone up in Europe. We fit the bill as our new cars i10 and i20 adhere to such standards.”
Germany, better known for its luxury marquees BMW, Audi and Mercedes has set aside EUR 5 billion to make the country eco friendly by encouraging fuel efficient cars. Those exchanging big cars for small fuel efficient ones will get EUR 2,500. Spain will barter 2 lakh cars by giving EUR 2000 in cash to people exchanging fuel guzzlers.