The Midas touch of India is clearly visible on the financials of global auto majors. Just like Japanese auto majors Suzuki and Honda , that get a sizeable portion of their revenues, sales and profits from their Indian subsidiaries , Korean car giant Hyundai too is increasingly banking on its Indian operations for adding weight to its business as numbers stay uncertain in developed markets due to economic recession and slowdown.
Hyundai, which has a strong presence in India now, after starting operations more than a decade back, said the country is playing a pivotal role in the company’s global operations and is expected to contribute higher contribution to profits as compared to China.
Hyundai, ranking 2 car maker in India behind Maruti Suzuki, has a capacity of around 6 lakh units, half of which service export markets. The company has earmarked India as one of the hubs for manufacture of models like i10, i20 and Santro and sells India-made cars to over 100 countries. While developed markets in Europe and US remain under pressure, operations in India have been growing.
Another brand that has made its impact felt, Suzuki, trebled its full-year global net income forecast on the back of strong Indian operations, despite sluggish sales overseas. While home market Japan as well as European countries contracted for Suzuki, India remained the only market to grow, with first half sales here moving up by 24% at 4.7 lakh units against 3.8 lakh units.
Honda is yet another company that is reaping benefits of India. The company has been gaining due to its strong presence in two-wheeler market. Its JV Hero Honda and fully owned Honda Motorcycle and India (HMSI) — are expected to contribute 40% of its global motorcycle production and a sizeable portion of profits and revenues.
Source: Economic Times