INDIA EXPORTS ITS FIRST PASSENGER CARS
India today signed an agreement to
sell 500 mini passenger cars to Hungary, its first export
contract for cars, an industry ministry spokesman told Reuters.
    Under the agreement signed between Maruti Udyog Ltd (MUL) -
an Indo-Japanese car maker - and Hungary's state-owned Mogurt
trading company - the cars, valued about two mln dlrs, will be
delivered in 1987, he said.
    "We expect Hungary will buy up to 5,000 Maruti cars per year
from next year if the first batch proves popular in that
country," he said without elaborating.
    The launching of 800 cc Maruti cars in 1983 revolutionised
the country's dormant automobile industry, which until then had
marketed models which were at least 30 years old.
    The Indian government owns 74 pct stake in MUL, and the
balance of 26 pct is held by Suzuki Motor Co Ltd of Japan.
    The Japanese-style Maruti, costing about 81,000 rupees, is
the cheapest car on the Indian market and has proved a popular
model, with order books full for the next three years, industry
sources said.
    MUL and India's three private companies have a combined
production capacity of 206,000 passenger cars a year.
 REUTER
