This is yet another example of Indian auto market growing leaps and bounds. In order to meet the constantly increasing domestic demand, Hyundai Motor India Limited will ramp up its production capacity at its Chennai facility by 12 percent to 6.7 lakh units. H.W. Park, chief executive, HMIL, confirmed that the company will increase its production capacity by 0.7 lakh units at its factories to meet the growing demand.
Moreover, Hyundai Motor India Limited has seen an unprecedented rise in its domestic demand due to which it will cut down its exports by 8 percent to fulfil the demands from Indian market. The India unit expects to sell 340,000 vehicles in India in 2010 and export 2.50 lakh to 2.55 lakh vehicles said HMIL Managing Director H W Park.
At present Hyundai Motors India produces six lakh units annually at its Sriperumbudur and Tamil Nadu plant. The company will also make some minor investments to increase the production capacity. HMIL is also planning to reduce its exports by around eight percent because the global car demands are slowing down. The country’s second largest car manufacturer, HMIL, exported 2.71 lakh units last year to 110 countries across Africa, Europe and Latin America.
Hyundai has recently launched a facelifted version of Hyundai Verna Transform and has its new SUV Hyundai Santa Fe coming to India this year. Park also stated that the company has no plans to introduce a smaller version of i10 or Santro in India. However, as per earlier reports, Hyundai may have an 800cc model on its cards for the Indian market.
Hyundai, which started operations in India in 1996, produces compact hatchbacks Santro, i10 and i20 and sedans such as Accent, Verna and Sonata.
