Hyundai Motor India will likely become the largest contributor to its parent company, Hyundai Motor Corporation (HMC) of Korea, in terms of sales and could soon overtake Hyundai's China subsidiary.
To date, Hyundai Motor India sold 405.689 new cars, while Hyundai's cumulative sales in China, the world's largest car market, topped 412.399 units. That is a difference of mere 6.710 units.
"India contributes 15-17% to the total sales and revenues of HMC and the growing demand for small cars will help us increase our profits further in 2010," said Mr. HW Park, who has been just recently appointed as a managing director and CEO of Hyundai Motor India.
According to Hyundai, demand for small cars have gone up after the scrappage incentives have been doled out by variousEuropean countries.
"Despite a strong demand for smaller vehicles in the domestic market, where the small car segment constitutes nearly 78% to the total car sales, there has been an increase in exports from India to Europe and this will help us increase our sales and profit in 2010" said Hyundai representative.
However, while sales in China is entirely to the domestic market, HMC's Indian subsidiary is currently exporting nearly half of its new car production to the West after the company decided to develop India as a hub for small cars. This year Hyundai expects to sell 560.000 units, which would be a growth of 13-14%.