Hyundai India to develop and produce cars in India from scratch

Thursday 08 August 2013, 14:33 PM by

South Korean automobile manufacturer Hyundai has been in the news for a number of reasons in the past few months. The car maker has adopted an aggressive strategy for the Indian market, wherein it aims to surpass Maruti Suzuki in the compact vehicle segment. Notably, India is the second largest market in the world for Hyundai after China. In a fresh development, it is now being said that the company will produce cars from scratch in India, which will help it in cost reduction and boost its chances of further growth.

Hyundai India to develop and produce cars in India from scratch | CarTrade.com
Hyundai India to develop and produce cars in India from scratch

The company is gearing up to launch the Grand i10 by next month, a car that will be slotted between the current i10 and i20 models. With the introduction of the Grand i10, Hyundai is hoping to increase its share in the compact car segment. Continuing this trend, the South Korean auto maker is lining up more launches in the coming future. Also, the company is hoping to conceptualise and subsequently, manufacture similar products in India. C H Han, the Chief Coordinator of Hyundai Motor India Limited, explained the company's stand on the same. "Yes, the aim is to have a car fully developed here in India. It won't happen in the next three to four years. It can happen after five years or more," he said.

Han also mentioned the causes that have led to the decision of completely designing and manufacturing cars in India. In response to certain questions on the same topic, he replied, "At present, HMIL engineers are only playing a supporting role in HMC's ( Hyundai Motor Co) global development. But for HMIL not only to strengthen position in India but also to able to cater to similar markets, it is important for it to be able to develop cars on its own."

Industry experts see this as a good move by Hyundai as it likely to brighten its chances of reaching the top. However, company sources suggest that the degree of capacity for research and development is quite low in India as compared to its facilities in South Korea. It is a well known fact that in order to develop and execute the production of a car, a lot of research and analysis is required.

Notably, the Research & Development facility of Hyundai Motor India, situated in Hyderabad, commenced work in the year 2009. It has been involved in providing assistance to the company for optimising products developed by the parent firm according to Indian car market requirements. Notable examples of the same premise include the upcoming Grand i10 and Eon hatchbacks, on which engineers from the research and development centre gave insights with respect to Indian buyers. After spotting potential in this facility, the company is looking to increase the scale of research.