Hyundai to expand production unit in Chennai

New Delhi: South Korean car major Hyundai will invest 50 million dollars (approximately over Rs 200 crore) in expanding its production unit at Chennai in India, as it gears up to go a step further to make the country its global hub with plans to start full-scale shipments of completely knocked down units.

The company has launched its new premium hatchback 'i20', which will be mainly exported to Europe, but expected to be launched in India either by the end of this year or early next year.

'We need to set up a fresh press line as to meet demands of newly launched premium hatchback 'i20' as well as the 'i10'. So we will invest around 50 million dollars to set up a fourth press line,' Hyundai Motors India Managing Director H S Lheem said.

He said a separate unit for the new press line would be set up at the company's existing plant at Chennai.

'I have got approval from the board of the parent company in Korea,' Lheem said, adding the company has also decided to start full-scale exports of completely knocked down (CKD) units from India as well.

'Our estimate is to export a total of 33,000 units of 'i20' this year and by next year we will start CKD exports to countries like Australia and New Zealand to save import duties in those markets,' he said.

Lheem said the mass production for exports of 'i20' would start by this month itself and the company's two units in Chennai are already running full capacity in three shifts of production.

Asked how the 'i20' would be positioned in the Indian market, he said: 'It will be 8-10 per cent more expensive than the 'Getz' and both will co-exist,' he said.

'Getz' is priced at Rs 3.39 lakh onwards.

Hyundai plans to sell a total of 5.8 lakh units of vehicles this year from its Indian operations.

'Next year we should be able to sell six lakh units,' he said, adding new markets like the US and Canada are being explored for export opportunities besides plans to ship more to Russia.