With a couple of all-new models on their way for an Indian debut, Hyundai could feel the heat of meeting customer demand. Sighting this situation, Hyundai is looking at setting up a new production facility in Rajasthan. The company prefers the new facility to be set in the north or western region of India.
Prior to this, the company was exploring options of setting up the new facility in Gujarat.
The current Chennai facility for Hyundai manufactures 6.8 lakh units annually. This plant is being reported to be utilising 99% of its capacity and with more models coming in, the production lines would fall short of meeting demand. Hyundai has already stopped the exports of the i20 hatchback to deliver to the local markets faster.
Once the location is decided, Hyundai will need 18-24 months to have the new facility up and running.
Source – AutocarPro