Hyundai Motors India Limited is planning to shift production of its model i20 to Turkey. It intends to reap tax benefits of the European market where the government is planning to promote manufacturing to create more jobs and reviving the economic conditions. Hyundai has also been facing tough labour situations at its Chennai plant recently where it has constantly been in dialogue with the labour union and the Labour Commissioner to resolve the issue.
Although the issues have been resolved, the company has suffered in terms of productions. Hyundai has shifted production of 40,000 units of i20 model to Turkey will help the company cater to markets in the European Union. Leftover capacity will be utilised to meet the growing demand for cars in this country. Currently, these 40,000 units were being exported from India to the European markets.
Hyundai has a manufacturing capacity of 600,000 units annually at its two plants near Chennai that can be ramped up by another 50,000 units. HMIL produced 560,000 units last year but its expected to cross 644,000 units of production figure this year.
