Hyundai plans to launch at least two to three new cars every year, beginning with a compact SUV and an MPV. To achieve this, the Korean car maker is considering setting up a second manufacturing plant in India. According to sources, the car maker is looking at various states for the new unit, including Gujarat, where other major players like Tata Motors, Ford and Maruti have set up their manufacturing plants already.
Talking about production capacity at their current plant, Hyundai India MD & CEO B S Seo told TOI. “Our existing factory in Chennai still has capacity to keep us going for some time. Currently, it produces 6.8 lakh units annually, and can be stretched to a little over 7 lakh vehicles.“
However, the plant in Chennai is functioning at its near full capacity, which has led the Korean car maker to cut down on its export commitments and accommodate heavy local demand . When asked about a second factory for India, Seo said, “We are looking at it very closely. We are watching very closely.“
Indicating that Hyundai has the capacity to construct a manufacturing unit at a rapid pace once a decision is arrived at. “We are very strong in construction of a new plant.”
Facing increased competition from other manufacturers like Honda, Ford and Maruti Suzuki, the second biggest car maker in India has decided to launch new products and also enter unexplored segments. Speaking about new launches, he said the company has plans to drive in at least two to three new cars every year, that may include variants or upgrades.
“We have plans to enter segments where we are not present and these include the compact SUV and the MPV categories,” Seo said. The company’s R&D centre in Hyderabad will also play a part in the development of the models. Seo said it takes almost Rs 1,000 crore to develop a new model and company officials said annual investments for new products will be to the tune of Rs 1,600 crore.