India’s 2nd largest car manufacturer Hyundai is looking to set up its second manufacturing unit in India with the aim to expand their market share in India. Recently Hyundai has announced to stop the shipments of its cars to European countries from India to concentrate on Domestic Indian markets.
Hyundai is getting very healthy competition from Honda, Ford and Maruti. In order to reduce time, cost and with the aim of launching 2-3 cars every year has decided to approach aggressively towards its goal.
Scope of expansion of existing Chennai plant is limited which forced them to cut down their commitments from European markets. Hyundai India MD & CEO B S Seo told TOI. “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. When asked about production capacity at their current plant.
Company is now searching a new destination for its new Plant; sources revealed that Gujarat might be the place for their new plant which is the favorite destination for many of the Car manufactures.
Hyundai SEO said, “We have plans to enter the segments where we are not present and these include the Compact SUV’s and The MPV categories.” And he also said it takes almost Rs. 1000 crore to develop a new model and company officials has said annual investments for new products will be around Rs. 1600 crore.