Exports drag Hyundai Motors sales down 19%

Hyundai Motors India Ltd (HMIL), India's second-largest car manufacturer and a wholly-owned subsidiary of Hyundai Motor Company (HMC) and the largest passenger car exporter today saw domestic sales growth up 12% for the month of November, 2010 with a sales of 31,540 units as against 28,162 units in November, 2009.

However, November exports dipped 52% to 13,002 units from 27,079 units in November, 2009 on account of the company's production mix adjustment to meet increased demand in the domestic market and the plant shutdown for maintenance work.

The company’s total sales for November this year fell 19.4% at 44,542 units as against 55,241 units in the same month a year ago.

When asked about the reason for decline in the company's exports, HMIL Director (Marketing and Sales) Arvind Saxena said: "The two major reasons were rise in domestic demand and the maintenance shutdown of both our plants."

According to him, Hyundai Motors India diverted its focus from overseas sales to the domestic demand that led to a 52% dip in exports.

With domestic sales growth of 12 per cent this month, the company hasn't planned any strategies for further sales, however, expects a steady growth in December.