Hyundai Motor India Inaugurates New Plant

Hyundai Motor India Inaugurates New Plant 

Production capacity doubled, stage set for second successful decade

Total investment of USD1 billion

New plant capacity of 3 lakh units per annum - Doubles overall capacity to 6 lakh units per annum

2008 target: Production of 5.3 lakh units

New plant to strengthen India as Hyundai`s global manufacturing hub for small cars

Dealer network to be strengthened

Chennai, February 2, 2008: Hyundai Motor India Ltd today commissioned operations at its second manufacturing plant at Sriperumbudur in a glittering function which included VIPs, industry and political leaders, HMI`s overseas and domestic business partners, members of the national and international media. Also present for the inauguration was the Chairman & CEO of Hyundai Motor Company, Mong-Koo Chung, who had flown in from Korea specially for the inauguration.

Mr H S Lheem-MD HMIL, Mr B K Suh-The Vice Chairman HMC, Mr Mong-Koo Chung-The Chairman & CEO, HMC along with the Hon`ble Chief Minister of Tamil Nadu, Dr Kalaignar M Karunanidhi at the Hyundai`s New Plant Inauguration in Chennai.

In a decade long history in India, marked by several remarkable milestones, this is perhaps Hyundai Motor India`s most significant achievement. With the commissioning of this new plant Hyundai Motor India is capable of producing 600,000 units per year doubling its present capacity of 300,000 units per annum. The new plant is located within the same 525 acre plot in Sriperumbudur adjacent to the first plant.

Inaugurating the plant, the Hon`ble Chief Minister of Tamil Nadu, Dr Kalaignar M Karunanidhi congratulated Hyundai for its dramatic growth, commenting that the company`s growth had paralleled the state`s rapid industrial development. Also present was Dr. R C Panda, Secretary, Union Ministry for Heavy Industries and Public Enterprises, Government of India, who also commended Hyundai Motor India for its contribution to the Indian industry and the Indian automobile industry in particular.

Speaking on the occasion, Hyundai Motor Company Chairman & CEO Mong-Koo Chung said: “We have recorded huge successes in India in the last 10 years, since we started operations in this country in 1996. Our new plant will be the platform for future growth. I`m sure Hyundai Motor India will play its role perfectly as a global manufacturing hub for all of Hyundai`s small car models. As we have got from India, so we seek to give not only in boosting the country`s industry and business, but in terms of being a responsible corporate citizen of India.”

The new plant will be dedicated largely to the production of Hyundai`s latest offering - the i10, winner of the most prestigious `Car of the Year` awards from the leading automotive magazines and TV channels like Business Standard Motoring, CNBC-TV18 Auto Car, the NDTV Car & Bike and the Overdrive magazine.

More importantly, the commissioning of the second plant means that Hyundai Motor India`s status as a global manufacturing hub for all small car models from Hyundai is established. Not surprisingly, Hyundai Motor India`s export destinations are expected to increase from 73 to 90 countries by the end of 2008.

Construction of the second plant began in November 2005 and was completed in a record of 19 months. Hyundai has committed a total investment of US $1 billion for the next phase. With the commissioning of the new plant, the company has set a manufacturing target of 5.3 lakh units for 2008.

To support the domestic growth, the company has already strengthened its dealer network from 183 to 230 in 2007; by the end of 2008, it expects to expand this to a 300-strong network.

Keeping pace with its production and sales growth, Hyundai has also become a leader in Corporate Social Responsibility (CSR) areas creating awareness of road safety through the Hyundai Traffic Squad involving its unique student volunteer scheme, in partnership with the Institute of Road Traffic Education and the traffic police departments.

In addition, Hyundai Motor India in an active partnership with the ITI in Guwahati have helped improve the infrastructure and training facility at the institute. The CSR activities also involve the area in and around the Chennai factory in Sriperumbudur where HMI has taken upon itself to improve the basic facilities in the primary schools in the area. From donating chairs and tables to paving the school area HMI is committed to improving the learning conditions in these schools. Hyundai Motor India Foundation is the social arm of HMI through which it donated more than Rs.83 million in 2007 to support various social development initiatives.

About HMIL

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 34 variants of passenger cars across segments. The Santro in the B segment, Getz Prime, i10 in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registering total sales of 327,160 vehicles in the calendar year (CY) 2007, an increase of 9.2 percent over CY 2006. In the domestic market it clocked a growth of 7.6 percent as compared to 2006 with 200,412 units, while overseas sales grew by 11.8 percent, with exports of 126,748 units.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boast the most advanced production, quality and testing capabilities in the country. In continuation of its commitment to provide the Indian customer with global technology, HMIL is setting up its second plant, which will produce an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum.

HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 230 to 300 this year.

The year 2007 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai exports to over 73 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. The year just ended also saw Hyundai Motor India attaining other milestones with the launch of the i10 and yet another path-breaking record in its young journey by rolling out the fastest 15,00,000th car.

The Hyundai Verna has bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by India`s leading automotive publication – Overdrive, the “Best Mid-size Car of the Year” award by the NDTV Profit C&B Awards 2007, the “Best Value for Money Car” by the CNBC Autocar Auto awards and ‘Performance Car of the Year 2007’ from Business Standard Motoring.

Last Year Sonata Embera won the ‘Executive Car of The Year 2006’ award from Business Standard Motoring Magazine and NDTV Profit – Car & Bike declared the Tucson as the ‘SUV of The Year 2006’. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. 

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