Hyundai Motors is ready to shift a part of its production to West Europe. Nearly a third of its production capacity will be shifted by mid-2010. Currently, Hyundai has its manufacturing location amongst others in Czech Republic and Turkey where it manufactures the i30 hatchback model.
The governments in Europe are offering tax benefits to auto makers for manufacturing small cars. Hyundai seems to be the first one to take up these benefits and move production of nearly 70,000 cars. The final location of the new manufacturing base in Europe has not been revealed so far.
Hyundai Motor India is India’s largest car exporter and is ready to increase its sales in non-European countries as well. It intends to increase its export base to 42 non-European countries including Africa, Middle East, Asia and Pacific and also Australia. It currently exports to 47 countries including mainly European nations, Middle East and Latin America.
“Just as in the Indian market, the i20 has been the most popular car overseas. Keeping this in mind, we have planned to increase our penetration in other key potential markets. This in turn also reiterates our commitment to emerge as a global hub for manufacturing and exporting small cars,” said HS Lheem, MD, HMIL.
It has already stepped up its production at its Sriperumbudur manufacturing unit. It exported 65,000 in first half of 2009 and this figure is expected to go up further by 10,000 units in the second half of the year with new orders received from Israel, south Africa and Indonesia.