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Hyundai planning a second factory in India?

Hyundai planning a second factory in India?
Parichay Malvankar
Written by Parichay Malvankar

Currently, Hyundai is operating its facility with annual production of 6.8 lakh units, which can be stretched to a little over 7 lakhs. With the Addition of the Grand i10, Xcent and the new i20, all of which command good sales numbers, has resulted in Hyundai cutting down on export commitments to serve the domestic market better.

We recently reported that Hyundai is also planning to enter the compact SUV and MPV markets by the next fiscal year. Both these segments also bring in significant sales numbers and going by the maximum capacity stretch that Hyundai can achieve, a new facility requirement is inevitable. When asked in an interview, a Hyundai official mentioned that they are looking at this matter very closely. Also, it was mentioned that it takes about Rs. 1,000 crore to develop a new model and the annual investments for new products will be to the tune of Rs. 1,600 crore.

By entering the segments which the company has left unexplored before, sales numbers are expected to increase, and hence, the annual capacity will also need to be bumped up. Hyundai is being rumoured to be looking at various states to set up a new plant and Gujarat might be turning out to be the hot favourite destination for many auto manufacturers.

Source – ET Auto