Hyundai Motor India may emerge Korean parent's largest revenue source

Hyundai Motor India Ltd (HMIL), the country's second largest passenger car manufacturer, is very close to being the largest contributor to its parent company, Hyundai Motor Corporation (HMC) of Korea, in terms of sales and may soon overtake the company's subsidiary in China.

Hyundai's cumulative sales in China between January and September this year stood at 4,12,399 and the corresponding figure for India was 4,05,689 units, a difference of mere 6,710 units.

According to H W Park, who has recently taken over as managing director and CEO of Hyundai Motor India (HMIL), India contributes 15-17 per cent to the total sales and revenues of HMC and the growing demand for small cars would help the company increase its profits further in 2010. Given the pace of growth India is expected to overtake China next year.

Park says the scrappage incentives being doled out by various western countries have created a demand for small cars. He says despite a strong domestic demand, there has been an increase in exports from India to Europe and this would help the company increase sales and profit in 2010.

Small cars constitute 78 per cent to the total car sales of HMIL.

However, he adds that while sales in China is entirely to the domestic market, HMC's Indian subsidiary is currently exporting nearly 50 per cent of its total production to the West after the company decided to develop India as a hub for small cars. The company expects to close the calendar year with sales of 5.6 lakh units, representing a growth of 13-14 per cent.