Posted Tue, 12/28/2010 - 19:20 by CarDekho Team
The leading carmakers of the country are gearing up to face challenges thrown by newer carmakers offering competitive products. One of the top three carmakers of the country - Hyundai Motor India, which is a wholly-owned subsidiary of Hyundai Motor Company (HMC), is going to set up a greenfield plant.
Hyundai Motor India that has bestselling models like – Hyundai i10, Hyundai Santro, Hyundai Verna, Hyundai Santa Fe etc under its belt will spend Rs 400 crore to build the 1.5 lakh capacity diesel engine plant. This is in view of the rising demand and the company is hoping to cater to it through this plant. Hyundai Motor already has two car manufacturing plants located in Chennai but the new plant’s location is yet to be decided. HW Park, MD, Hyundai Motor India was quoted by a business daily saying, “While we are channelising more production to India and cutting down exports, the new diesel engines would be fitted into our existing and future cars as local customers are gradually preferring diesel over petrol.”
The diesel engines in the current Hyundai i20 and other bugger models are imported by the company from South Korea. The company is also thinking of coming up with a third car plant in India to meet the growing demand.
Hyundai Motor has allocated 65 per cent to domestic demand for calendar year 2011. in 2010 the company sold a total of 3.56 lakh cars that aggregates for 60 per cent of the total year production . The company has seen good growth figures at 24 per cent in the Indian market.
Just like a number of other carmakers Hyundai too is planning another small car in the Indian car market, which will be positioned below the Chennai plant. To make the most of the increasing demand in the small car segment the company is coming up with this small car. This will be the smallest Hyundai in the company's global line-up and Indian market.