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Indian automotive market could recover faster than other markets

Thursday, September 24, 2020

The Indian automotive market continues to be robust and could recover faster than other markets, said SS Kim, managing director of Hyundai Motor India in an interview. He sees a short-term upswing during the Indian holidays in autumn, but sales figures will not return to pre-coronavirus levels until the beginning of next year. Only this month Hyundai has resumed production at its Chennai plant. Initially, production will be run in two shifts and an additional shift will be added as needed. Due to the corona virus, there are still restrictions in the supply of components and the corresponding skilled and unskilled labor.



Managing Director Kim sees a change in consumer behavior in India from public transport to own vehicles. He predicts a flourishing trade in used cars and a stronger demand for small cars. “Hyundai India has a long-term product strategy and we will continue to maintain this after the coronavirus crisis. Our goal has always been to make vehicles safer and to provide them with technological innovations that set us apart from our competitors,” Kim said. Hyundai is also hoping to benefit from the recent government stimulus measures for the automotive industry and its suppliers.

The government intends to use the funding to build an improved domestic supplier industry and establish several industrial centers. This is intended to promote economic growth on the one hand and reduce dependence on foreign suppliers on the other. In order to encourage consumers to buy a new car, a reduction in value-added tax or wage and income tax is under discussion. The automotive industry is also calling for a scrapping bonus. The Hyundai managing director praised the support of local governments in the area of logistics and freedom of movement of the workforce with regard to the current coronavirus situation in India.

Vehicles in India are subject to the corresponding technical automotive standards, known as Automotive Industry Standards or AIS for short. These are based on the UNECE standards. The Automotive Industry Standards are issued by the Ministry of Road Transport and Highways, the ministry responsible for regulating the automotive sector in India. AIS certification is required for automotive components. The process of AIS certification according to the Indian AIS (Automotive Industry Standard) can be challenging and complex. We are happy to support you in the AIS certification process and are always available to answer your questions.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769261, US: +1 773 654-2673).
If you have any questions you can also use our chat-window in the bottom right. (Please check your browser settings if you can’t see the window)

You can also check out our free AIS-Brochure, which can be downloaded right here as a PDF file.

Julian Busch

About the author: Julian Busch is the founder and managing director of MPR International GmbH

Publisher: MPR International GmbH

Tel.: +49 69 271 37 69 261

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