Hyundai to Relocate its Production Plant

author image Satish
Thursday 09 July 2009, 00:00 AM

Hyundai Motors India Limited has decided to partially relocate its production plant for its popular small car model, Hyundai i20, to Czech Republic, Slovakia or Turkey. It currently manufactures the small car at its Chennai plant and exports to the European market. The company has decided to move the plant closer to its retail market in Europe to save on logistics cost.

“We are looking at competitive pricing for the i20 and will shift some portion of its production next year. While India will remain as the main production hub for the car, the European orders will be met from the new production facility,” HMIL CEO & MD HS Lheem said.

Hyundai is India’s largest car exporter and caters to demands for small cars from overseas markets like Germany, Italy, the UK, and others. It has been encashing upon the small car incentives being offered by various governments in Europe which promote people to buy smaller cars. There has been an unexpected increase in the demand of small cars due to such incentives. Currently, shipments from India increase the cost by 10-15% due to logistics and import taxes.

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