Hyundai Cars get economical in India

Indian government and the South Korean government have signed a new Free Trade Agreement according to which they will eliminate or reduce import duties on 85 per cent of South Korean exports and 90 per cent of India's overseas sales by 2019.

It will come into being in early next year. Assocham has welcomed the new trade agreement which will improve the trade in automobiles, heavy engineering, electronics area.

Since the trade agreement has also put emphasis on auto exports, the reduced import duties and tariffs will make Korean products cheaper in India. This will include Hyundai cars. Hyundai largely imports its auto components from Korea for manufacturing its cars in India.

Once the agreement is sanctioned by the Korean government early next year, it would mean that Hyundai auto components will see a huge  drop in their prices which would in turn make Hyundai cars cheaper. Car parts accounted for 12.6% of Korea’s US$ 8.98 billion worth of exports to India last year.

The new agreement will create job oppurtunities for Indian engineers in South Korea. It also means that not only Korean company will have better access to 1.2 billion Indian customers.