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The company on Saturday commissioned its second plant in India set up with a total investment of 528 million dollars (Rs 2,429 crore).
It is also investing 263 million dollars on a new engine and transmission plant with a capacity of 3 lakh units a year, besides investing 40 million dollars on a research and development centre at Hyderabad.
"Our new plant will be the platform for future growth. I am sure Hyundai Motor India will play its role perfectly as a global manufacturing gun for all of Hyundai's small models," Hyundai Motor Co Chairman and CEO Moong-Koo Chung said.
Asked about the details of the USD 1 billion investment, Hyundai Motor India President Ashok Jha said most of it has already gone into the second plant and remaining would be invested on it, which will mark the next phase of expansion till 2013.
With the new plant, the company's total production capacity in India will double to six lakh units per annum.
It will have a capacity of three lakh units and will be utilised mainly for production of its new hatchback 'i10'.
Jha, said the company is targeting to produce 5.3 lakh units this year and by next year it will touch 6-6.3 lakh units.
"With exports being a main focus we expect 50 percent of our total production to be used for overseas markets," he added.
On plans to strengthen its position in the small car segment, HMIL Senior Vice-President for Sales and Marketing Arvind Saxena said the company was mulling over a new small car, which could be placed lower than its flagship model Santro.
"As of now it is just in the thought process. It may take another three years to develop this," he said, adding there was no plans to phase out the Santro.
On the sedan segment, Saxena said the company was studying the feasibility of bringing Avante as a replacement to Elantra.
The company's R&D centre in Hyderabad would undertake computer aided design activities along with other research on low cost materials.
It will have an employee strength of 1,000 by 2010, Jha said.
Source: DDNEWS
Posted February 4th, 2008 by Armen Hareyan
