UPDATE 1Hyundai opens new India plant to double output
(Adds comments, detail)
By Rina Chandran
CHENNAI, India, Feb 2 (Reuters) - Hyundai Motor Co
(005380.KS: Quote, Profile, Research), South Korea’s top automaker, on Saturday opened
its second plant in India to take on growing competition and
cementing the country’s position as a global hub for small
cars.
Hyundai, which along with affiliate Kia Motors (000270.KS: Quote, Profile, Research),
is the world’s sixth-largest automaker, is banking on new
models such as the premium Genesis, and new factories in
markets such as China and India to boost sales by 20 percent
this year.
Hyundai is the second-biggest carmaker in India and the
company said it is prepared to fight greater competition from
an ultra-cheap car from No. 3 Tata Motors (TAMO.BO: Quote, Profile, Research).
“We are not looking to compete with the Nano in terms of
price, but we are keeping our options open,” said Ashok Jha,
president Hyundai Motor India referring to the Tata car priced
at just over $2,500.
The proposed mini car would be a mass market model that
meets all global standards, he said without elaborating.
The new factory in Sriperumbudur, near the southern city of
Chennai, will double capacity to 600,000 units, second only to
leader Maruti Suzuki India Ltd’s (MRTI.BO: Quote, Profile, Research) planned expansion to
1 million units by 2010/11.
The plant, which is adjacent to the existing plant, will
largely be dedicated to making the new i10 for local and export
markets, Chairman and Chief Executive Chung Mong-Koo said. Continued…
