Global auto players bank on India for growth
Indian auto market is growing leaps and bounds thereby helping most of the global auto players to bank on the country. Indian arms of Hyundai, Honda and Suzuki are contributing a major share of their revenues from here only whether it is sales or profits. The Indian arms are also giving them upper hand when global recession affected most of the auto players even a few were declared bankrupt. Take Hyundai for instance, its Indian subsidiaries contribution is between 15 to 20 per cent to global revenue. Interestingly, the profit from Indian operation is better than China on account of domestic sale and export.
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In January-October 2009, Hyundai India posted growth of 12 per cent year-on-year at 4.57 lakh units with domestic sales up 11% at 2.39 lakh units and exports up 13% at 2.17 lakh units. Same is the case with Suzuki, its Indian arm, Maruti Suzuki, soared by 24 per cent at 4.7 lakh units, in first half FY, as compared to 3.8 lakh units in the same period last year. Honda is not legging behind in the revenue aspect. Honda is present in four wheelers and two-wheeler segment through joint venture with Hero group. Its two wheeler JV is expected to post 40 per cent contribution in company's global turnover. Seeing this phenomenal growth, Volkswagen is going to launch its Volkswagen Polo and Volkswagen Beetle in India.
Read More on : Volkswagen Polo
