Home » Articles
Car Articles
Read articles on cars and car industry. Get fully updated on all information related to cars. Read exciting happening in the Indian and Global Car industry, tips to help you and more...
Old Articles
Maruti and Hyundai Eye European Markets
Leading Indian car Manufacturers Maruti Suzuki and Hyundai Motors are expecting huge profits from the incentive package that has been presented by the government of Europe. A new scheme called the “Scrappage Scheme” has led to an intense debate in the European countries. After the discussions on the pros and cons of the “Scrappage Scheme”, Maruti Suzuki and Hyundai Motors sensing an opportunity wants to grab this for the development of the Indian Car Industry.
Many European countries have introduced scrapping scheme as part of economic revitalization package. The scheme results in three main benefits.
To filter genuine candidates, the scrappage system rules that the car should have been in possession of the owner for at least one year. The scheme details that the discount cannot be used once the vehicle is purchased. Car owners with multiple vehicles can’t trade all of them at once to get a collective discount, for example, £4000 against two vehicles surrendered. The scheme prohibits dealers from trading their old vehicles to make money.
The European governments are laying special thrust on purchase of small cars as they are more fuel efficient and costless. As per an estimate by the UK government, the new cars sales are likely to cross 3,00,000 units in the current fiscal year.
The European Automobile Manufacturer Association (ACEA) too has recommended fleet renewal programme. Some of these companies in the European car market include big economies like the Austria, France, Germany, Italy, Portugal and Spain. More eastern European countries are likely to introduce similar schemes in the near future. Every car surrendered under the scheme will attract a cash reward of €1000 to €1,500.
Many European countries have introduced scrapping scheme as part of economic revitalization package. The scheme results in three main benefits.
- Revives several financial sectors including the auto industry, and steel manufacturing.
- This would help in discontinuing the old models that will give way for the new models with innovative technology leading to better performance and fuel efficiency which will result in lower emission and cleaner environment.
- Will bring in an economic turnaround and create more job opportunities
To filter genuine candidates, the scrappage system rules that the car should have been in possession of the owner for at least one year. The scheme details that the discount cannot be used once the vehicle is purchased. Car owners with multiple vehicles can’t trade all of them at once to get a collective discount, for example, £4000 against two vehicles surrendered. The scheme prohibits dealers from trading their old vehicles to make money.
The European governments are laying special thrust on purchase of small cars as they are more fuel efficient and costless. As per an estimate by the UK government, the new cars sales are likely to cross 3,00,000 units in the current fiscal year.
The European Automobile Manufacturer Association (ACEA) too has recommended fleet renewal programme. Some of these companies in the European car market include big economies like the Austria, France, Germany, Italy, Portugal and Spain. More eastern European countries are likely to introduce similar schemes in the near future. Every car surrendered under the scheme will attract a cash reward of €1000 to €1,500.
In “Scrappage scheme” introduced by some European countries in February, it was noted that new cars sales increased significantly. In Germany, new car registrations went up by 30 percent under the scheme and as many as 20 percent of all old cars were replaced with new cars in France. In Portugal as many as 16 percent of new cars sold during 2008, under the scheme, replaced old cars.
Not every car can be considered for scrappage. There are certain eligibility for such a scheme for both old vehicles and new vehicles.
If you are opting for the scheme, the old vehicle should be a car or Light Commercial Vehicle which should not exceed 3.5 tonnes of weight. It is also necessary that the vehicle should be UK registered before 31st August 1999. The vehicle should be clear of all the finance issues and is mandatory to have all the documents. “Scrappage scheme” will not be eligible for the stolen cars and cars without insurance.
As the scheme was in vogue in February, several automobile companies benefited from this. Hyundai Motors received an order for 11,000 units of Hyundai i20s from a single dealer in Germany. Likewise Maruti Suzuki has exported 19,000 units of A-Star (re badged as Alto) to European markets. Maruti Suzuki alone has an export target of 1,50,000 units of which 90,000 units are meant for Europe only.
Hyundai Motors and Maruti Suzuki view these developments as an opportunity to push their products into European markets. Currently, Hyundai Motors exports the small cars i10 and i20 in Europe and Maruti Suzuki exports its leading cars like Swift hatchback, Alto and Zen Estilo.
Based on the UK model, many more European countries are likely to introduce the “Scrappage Scheme again. The goal is to create a cleaner environment without sacrificing convenient mobility. At least 12 EU countries would initiate the fleet renewal programme this year. Since the poorer eastern European countries like Czech Republic, Hungary and others too are likely to initiate this programme, they would naturally purchase low cost cars which make Hyundai Motors and Maruti Suzuki the direct gainers.
Should the scheme be introduced in India, it would be a sight to watch with lots of swanky new cars plying on Indian roads instead of old smoke puffing old cars which would also help bring down pollution levels drastically.
Not every car can be considered for scrappage. There are certain eligibility for such a scheme for both old vehicles and new vehicles.
If you are opting for the scheme, the old vehicle should be a car or Light Commercial Vehicle which should not exceed 3.5 tonnes of weight. It is also necessary that the vehicle should be UK registered before 31st August 1999. The vehicle should be clear of all the finance issues and is mandatory to have all the documents. “Scrappage scheme” will not be eligible for the stolen cars and cars without insurance.
As the scheme was in vogue in February, several automobile companies benefited from this. Hyundai Motors received an order for 11,000 units of Hyundai i20s from a single dealer in Germany. Likewise Maruti Suzuki has exported 19,000 units of A-Star (re badged as Alto) to European markets. Maruti Suzuki alone has an export target of 1,50,000 units of which 90,000 units are meant for Europe only.
Hyundai Motors and Maruti Suzuki view these developments as an opportunity to push their products into European markets. Currently, Hyundai Motors exports the small cars i10 and i20 in Europe and Maruti Suzuki exports its leading cars like Swift hatchback, Alto and Zen Estilo.
Based on the UK model, many more European countries are likely to introduce the “Scrappage Scheme again. The goal is to create a cleaner environment without sacrificing convenient mobility. At least 12 EU countries would initiate the fleet renewal programme this year. Since the poorer eastern European countries like Czech Republic, Hungary and others too are likely to initiate this programme, they would naturally purchase low cost cars which make Hyundai Motors and Maruti Suzuki the direct gainers.
Should the scheme be introduced in India, it would be a sight to watch with lots of swanky new cars plying on Indian roads instead of old smoke puffing old cars which would also help bring down pollution levels drastically.
