The Korean automaker Hyundai Motors is planning to invest Rs 6,500 crore in its Indian market. According to the reports from ET Auto, the company is setting up to increase production capacity by 50,000 units and has also been planning to add nine new models over the next three years. The new additions to the Indian line-up will include the Kona electric SUV among other new models as well as facelifts of some models.
The Managing Director of Hyundai Motor India, Mr. YK Koo, has told the media that the company is going to invest Rs. 6,500 crore in order to expand the capacity of its operations in the Indian market by 50,000 units by stretching manufacturing processes and debottlenecking activities. Koo said that the company produced 6.78 lakh units in 2017 as against 6.65 units in 2016 with a year on year increase of 2.85%. He also stated that Hyundai India is aiming to sell 7 lakh units by 2018 of which 25% will be for export markets, and increase the sales to 7.5 lakh units by end of 2019. According to Mr. Koo, HMIL has contributed to about 15% of Hyundai’s volume globally and is expected to carry on with the momentum.
The officials from Hyundai Motors India stated that although Hyundai is not playing a volumes game, they are aiming to become a one million car maker in India by the end of 2020. They also explained that the company has planned to get assembled items from vendors rather than single components in order to save time and increase the output.
For now, the Korean carmaker hasn't got any plans for a new production facility in India. YK Koo said that a new plant will be viable only if its capacity is 200,000 units per annum and the company would decide it as per the requirement after 2020. He also stated that the company have already increased the per hour output from 45 earlier to 58 units and are planning to increase it to 60 soon. In the past 20 years, HMIL has invested about Rs. 21,000 crore in its two plants in India at Sriperumbudur, near Chennai. Presently, the company has an annual installed capacity of seven lakh units.
Hyundai Motors India has made a remarkable move with the plans to expand aggressively in the Indian market. With nine new launches in store within the next three years including an electric car, Hyundai Motors India is aiming to dominate the Indian market in the next three years.
As per the planned schedule, Hyundai Motors India would start launching the new models from 2018. This includes four full model changes, two facelifts, two new segment products, and an electric vehicle. For the current year, the Korean automotive manufacturer has planned to roll out two upgraded cars along with a new ‘family-oriented’ car before Diwali which is going to be positioned between Eon and Grand i10. Mr. Koo said that the company has not yet finalized the name of the car.
Koo also stated the company will be launching an electric powered sedan or a sports utility vehicle (SUV) by 2019 and has planned to import the charging kits from the home country Korea.. Presently, it was carrying out a study in the capital New Delhi, Mumbai and Bengaluru to decide whether to roll out electric vehicle-sedan or electric vehicle-SUV.
Some time back at the New Delhi Auto Expo, Hyundai Motors India Limited revealed the Kona electric sedan which it had planned to bring to India in a completely downsized condition. The company is targeting to sell around 50 units a year to start with, said YK Koo.