Hyundai is betting big on India. The South Korean auto major wants to become the largest selling car manufacturer in this country.
Big push into diesel vehicles planned.
NEW DELHI: Hyundai is betting big on India. The South Korean auto major wants to become the largest selling car manufacturer in this country. To achieve this end, it is looking at introducing two brand new cars every year and has already declared its intention to convert India into a global hub for small cars.
Hyundai Motor India’s managing director HS Lheem does not rule out the possibility of India eventually becoming the only Hyundai operation worldwide which will produce small cars for global consumption. The Santro, for example, is being produced only in India even now. But, he hastens to add, unlike other companies, Hyundai will not make India a global hub by manufacturing for other brands and will instead introduce only its own products in the country.
Even for the domestic market, Hyundai has major plans up its sleeves. It has already earmarked a $860 million investment by next year for putting up a second manufacturing plant that will take up its total installed capacity to six lakh units a year. Also on the anvil is a brand new model in the small car segment (apart from the flagship Santro), the launch of the much-awaited Verna (which is another name for Accent), and a whole range of diesel cars.
In fact, Hyundai appears to be betting big on the diesel segment. Lheem says the Korean parent has successfully developed 1.2-litre and 1.5-litre diesel engines and both of these will be introduced in India in the near future. He acknowledged that the 1.2 litre engine will be fitted on to the Getz, adding that a diesel Sonata and a 1.5-litre diesel Verna are also to be launched in the country this year.
While ruling out a diesel engine for the Santro for the time being, he said that almost 40% of the European car market is diesel. Since this market is also a major export destination for Hyundai, the company’s latest thrust on diesel engines will help boost not only domestic sales but also exports.
Apart from this diesel thrust, the company is also conducting a feasibility study for entering the light commercial vehicles segment with ‘Porter’, a pickup truck first launched in 1997.
Hyundai India, which is eyeing sales of three lakh units this year, may however be faced with a production shortfall since its existing plant is already running at peak capacity and the second one is scheduled to be commissioned only late next year. The company sold 2.5 lakh vehicles last year, of which two lakh were sold in the domestic market.
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