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Attention - Unauthorised Exports

Jul 2024
Attention - Unauthorised Exports

Unauthorised exports involve Hyundai construction equipment products being exported beyond the Indian market region by customers and traders without authorization. This unethical practice aims to generate short-term profits by selling Hyundai equipment intended for Indian conditions in overseas markets, contrary to the OEM's consent.

Problem Caused by Unauthorised Export

These activities have created significant challenges within Hyundai's distribution network, adversely impacting various stakeholders including global subsidiaries, dealerships, and customers worldwide. In India, such practices undermine OEMs and their dealers, leading to brand dilution and reduced profitability. Additionally, they pose difficulties for finance partners in tracing the origin of equipment.

Steps Taken By Hyundai To Curtail This Practice

To address these issues, Hyundai has implemented several measures. They are actively communicating with their dealers to discourage such practices and urging them to promptly report any unauthorised exports. Hyundai exercises heightened scrutiny particularly when equipment is purchased outright with a 100% deposit. They scrutinise the work orders and obtain declarations from customers confirming the equipment's intended use within India. Furthermore, Hyundai has engaged with the Government of India to seek regulatory actions to curb these unethical practices. 

By taking these steps, Hyundai aims to mitigate the adverse effects of unauthorised exports and uphold ethical standards across its operations.

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