Hyundai to invest Rs800 crore for 'smaller' car in India
November 17, 2009
South Korean car maker Hyundai Motor Co has said that it will invest around Rs800 crore to develop a small car for the Indian market that is likely to be launched in the next two years, reports PTI.
The company, which has operations in India through a wholly-owned subsidiary, Hyundai Motor India Ltd (HMIL), will manufacture the car, which will be smaller than the Santro, at its plant in Chennai.
"We are developing a small car and about Rs800 crore will be invested at the Korean plant for development," HMIL's newly appointed managing director and chief executive Han-Woo Park told reporters.
He declined to give any details, but said, "It will be smaller than the Santro and the price will also be lesser. It will take at least 24 months from now to launch the car in India. Right now, it is in the design stage."
"Initially it will be targeted at India but gradually it will also be exported," Mr Han-Woo added. "It will be manufactured at the Chennai plant once the design gets completed," he said.
HMIL, which sells popular compact cars like Santro, i10 and i20, has made India a small car hub for the Korean firm and has been exporting the cars to overseas markets.
In October, the company sold a total of 51,736 units, a growth of 11% compared with the same month last year. Its exports, however, dipped by 11.9% to 23,435 units during the month.
In India, small cars account for 80% of the domestic market and exports are also growing. According to the Society of Indian Automobile Manufacturers (SIAM), between April and October, small car exports rose 41% to 2,35,837 units against 1,66,934 units a year ago. — [email protected]