Hyundai Motor India has revealed that its production has not been affected in the least by the recent devaluation of the Indian Rupee (INR). The company has also revealed that it has been trying to make up for the deficiency in Indian market by looking out for other markets. This is not exactly going to be music for the ears of the various entities related to the company in India as well as the overall automobile industry in India because there is a good chance that if the situation depreciated further and Hyundai Motor was able to locate another lucrative destination it might relocate over there.
This supposed relocation could have some serious consequences for the workers of the company as well – people may either have to leave their jobs or they may have to leave their country in order to keep their jobs. However, it needs to be reiterated here that this is just a speculation on my part and may or may not become true.
R Sethuraman, the Finance and Corporate Affairs Director of Hyundai’s Indian arm, has told the media that the rupee depreciation has actually helped the company look at different markets for purposes of export. In fact, by following this way of operation they have also been able to compensate for the deficiencies in the domestic markets.
In fact the Indian automobile industry has been going through a tough phase in the last 10 years as is evident from the words of Sethuraman it has seen a negative growth rate of approximately 14%. The company though has been able to buck this trend. Even though its negative growth rate has been mapped at 4.8%, its market share has increased to 20.4% – incidentally in 2012-13 the company had a market share of 18.3%. In fact, Hyundai is one of the biggest automobile exporters of the country as can be gauged from the fact that its products are sent to 125 countries.
Sethuraman further states that close to 40% of its products is sent to countries in Europe, Latin America, Africa and Asia. Its products are also exported to Middle East and Asia Pacific. Hyundai also holds the distinction of being the second biggest manufacturer of cars in India. As far as exports go it is the second biggest name in the segment for passenger cars. In recent times the company has also been able to strengthen its position in the India market with a research and development centre in Hyderabad that looks to help the company achieve higher standards of excellence in the domain of automobile engineering.
Coming to the bit on the possible implication of this positive performance from Hyundai it can be said that it is surely a bright light for the Indian automobile industry. This perhaps shows that not all is bad with Indian economy as is being projected in so many circles. More importantly for the future of India’s economy this performance could help in drawing companies to come and invest in India, which would ultimately lead to the creation of more jobs and economic security all around. That, in turn, could elevate the image of India in the international business circle.