Hyundai to ramp up production with second plant in India

Hyundai Motor India Limited (HMIL), a fully owned subsidiary of South Korean manufacturer Hyundai is "closely" looking at building a second factory in India. This information comes as the manufacturer lines up heavy investments for the country, along with at least two to three new cars every year. In the wake of increasing competition from Maruti Suzuki, Ford and Honda, it has decided to be aggressive with new products and enter new segments.

HMIL MD & CEO B S Seo said, "Our existing factory in Chennai still has capacity to keep us going for some time. Currently, it produces 6.8 lakh units annually, and can be stretched to a little over 7 lakh vehicles." However, the Korean management also realises that the scope for expansion in the present factory is limited, which has prompted cutting down on export commitments to create place for domestic needs. HMIL has done away with shipments from India to Europe as the Korean major now serves the key region from factories in Czech Republic and Turkey.

With regards to the new factory, HMIL is understood to be looking at various states, including Gujarat. Of late, Sanand in Gujarat is increasingly turning out to an auto hub, as it already has plants by Tata Motors, Ford and Maruti. Though the option for this new plant is being explored, there is no confirmation yet from the Hyundai top brass.

When asked about new launches, Seo said, "We have plans to enter segments where we are not present and these include the compact SUV and the MPV categories."