Hyundai opens second Indian plant
Chennai, February 3, 2008
Hyundai Motor, South Korea's top automaker, has opened its second plant in India to take on growing competition and cementing the country's position as a global hub for small cars.
Hyundai, which along with affiliate Kia Motors, is the world's sixth-largest automaker, is banking on new models such as the premium Genesis, and new factories in markets such as China and India to boost sales by 20 per cent this year.
Hyundai is the second-biggest carmaker in India and the company said it is prepared to fight greater competition from an ultra-cheap car from No.3 Tata Motors.
'We are not looking to compete with the Nano in terms of price, but we are keeping our options open,' said Ashok Jha, president Hyundai Motor India referring to the Tata car priced at just over $2,500.
The proposed mini car would be a mass market model that meets all global standards, he said without elaborating.
The new factory in Sriperumbudur, near the southern city of Chennai, will double capacity to 600,000 units, second only to leader Maruti Suzuki’s planned expansion to 1 million units by 2010/11.
The plant, which is adjacent to the existing plant, will largely be dedicated to making the new i10 for local and export markets, chairman and chief executive Chung Mong-Koo said.-Reuters