Auto firms worried over Egypt crisis; Exports hit

The political crisis in Egypt has raised worries for the Indian auto companies . Egypt, one of the largest market in West Asia for Indian automakers, has been hit as the full-blown political crisis has dried the market temporarily for Maruti, Hyundai Motor ,Bajaj Auto and other major players, affecting their export orders. Maruti Suzuki has said that its exports to Egypt, which accounts for 3% of its overseas sales, would be directly impacted by the political unrest. 

It sells popular compact car Alto and Maruti 800 in Egypt. Although it has no direct operations in the country, its single distributor that is responsible for sales, lies closed for the time being. Maruti exported around 4,000 cars to Egypt in the last fiscal. “It is one of the most important market in West Asia where demand for our older models like Alto has been strong for years. 

We are closely monitoring the current political crisis as there has been no sales at our distribution network in Cairo in the past 25 days of protests," Maruti’s managing executive officer (marketing & sales), Mayank Pareek said. Indian carmakers are already facing tough times as sales in Europe, the single largest export market have been declining for the past one year. Overall exports declined 2% to 3.21 lakh cars for the first nine months of the fiscal . For Maruti, exports declined by 3% in the April-January period to 1.16 lakh units from 1.20 lakh units in the same period last fiscal. 

Major car exporters like Maruti Suzuki and Hyundai have been looking at developing alternate markets in Australia, Vietnam, Malaysia , and Latin America as orders from Europe have been shrinking. Country’s largest exporter, Hyundai Motor India, which posted a sharp 18% fall in exports in first nine months of the fiscal is also facing sale constrains as its single distributor has also shut operations, where it sells around 4-5 ,000 cars per year. “With the current uncertainty , there has been no sales in past few days. If it continues the export would be impacted in near future,” the Hyundai spokesman said. 

Bajaj Auto, which dominates the threewheelers market views it as a temporary disturbance . “Exports will continue as scheduled ,” said Rakesh Sharma, president (international operations) Bajaj Auto. The company exports substantial volumes of two and three-wheelers to Egypt, but refused to divulge the quantum of exports. The unrest in Egypt has forced many Indian firms, which operate in other sectors to close operations temporarily. FMCG firms Dabur and Marico and paints manufacturing company Asian Paints have shut their plants in the country.

Share this:
Tags:

About Jessica Priston

Ut tellus dolor, dapibus eget, elementum vel, cursus eleifend, elit. Aenean auctor wisi et urna. Aliquam erat volutpat. Duis ac turpis. Integer rutrum ante eu lacus. Vestibulum libero nisl, porta vel, scelerisque eget, malesuada at, neque. Vivamus eget nibh. Etiam cursus leo vel metus. Nulla facilisi. Aenean nec eros.

  • Website
  • Google+
  • Rss
  • Pinterest
  • Instagram
  • LinkedIn
  • Vimeo
  • Youtube
  • Flickr
  • Email

Related News

  • Cashback site Cashkaro now offers restaurant discounts

    India’s e-commerce market looks large and lucrative enough from the outside, but insiders know it is very challenging. In fact, the number of e-commerce sites and businesses is growing so fast here today that the competition is cut-throat. This

  • What is Viscose Material? Advantage and disadvantage of viscose.

    Viscose is a unique form of wood cellulose acetate used in the nnmanufacture of a number of different products. This includes items for nnthe medical industry, though it is perhaps most common as a major nningredient in the production of the fabric r

  • Honda launches new CBR 250R bike
    Honda launches new CBR 250R bike
    July 01, 2014 5:50 am

    New Delhi: Honda Motorcycle & Scooter India (HMSI) launched a new edition of its global sports performance bike CBR 250R priced between Rs 1.56 lakh and Rs 1.86 lakh (ex-showroom Delhi). The 2013 edition CBR 250R is available for sale across a

  • Zara has opened store at Ambience mall, Gurgaon

    Zara, has opened its new store at Ambience mall, Gurgaon. Spread over 28,000 sq.ft. across two floors the store has taken the space earlier occupied by Debenhams. With this Zara now has twelve stores in India. It is present in 86 countries with