Hyundai Motor India is planning to set up a diesel plant near Chennai where they have already existing car manufacturing plant. 

In July, during the budget announcement, if the Government increases excise duty on cars, it may lead to the immediate drop in car sales says the second largest car manufacturing company in India. 

Car sales were showing signs of recovery as May results had shown, but any increase in excise duty could neutralize the recent gains, says Mr. H. S. Lheem, Managing Director Hyundai Motor India.  

Mr. Lheem expected the Indian operations to post a 15 per cent increase in revenues this year from $4 billion in 2008. 

Mr. Lheem said we initiated a feasibility study for setting up a diesel engine plant. He did not give more details about it. 

Sriperumbudur plant near Chennai is a petrol engine plant of Hyundai Motors already deals in making a Kappa engine. Hyundai i10 car has a Kappa engine which was developed at a cost of over $400 million. “Hyundai is expected to sell around 5.8 lakh cars during this year, which is 18 per cent more than the last year”, said Mr. Lheem. 

3 lakh cars will be exported including to some European countries out of the 5.8 lakh cars sold this year. “Hyundai Motor has two plants at its Sriperumbudur site with a combined total capacity of 6 lakh cars but with three shifts, it can produce up to 6.3 lakh cars”, said Mr. Lheem. The company expects to maintain its share in Indian market this year which was 20.4 per cent last year. 

He adds to it, “We have been receiving more export orders of late which means our exports will outpace domestic sales at present”. Hyundai mostly exports its i10 and i20 models and is the largest exporters of cars from India. Hyundai is expecting to increase its shifts from July to three consisting of eight hours each at its first plant and has already increased the shifts to two, consisting of nine hours each. 

“The company’s R&D centre in Hyderabad was performing well and the company plans to increase the headcount there to 800 from 200” informed Mr. Lheem. 

In 2011, Hyundai India is planning to launch a new mini-car in the entry level segment, still for now there is a possibility of launching i30 model in India, said Mr. Lheem.

Best Selling Hyundai Cars:
Hyundai Santro
Hyundai Santro Xing
Hyundai Getz Prime
Hyundai Verna
Hyundai Sonata Embera
Hyundai i10
Hyundai Accent
Hyundai Elantra
Hyundai Tucson
Hyundai i20

Related News:
Hyundai organizes free pollution check up camps across India
Hyundai to provide 96 premium cars for ASEAN-ROK Summit 2009
Hyundai cumulative sales up 8.4% in May 2009
Mini- car from Hyundai by 2011

Related Books:
Pedal Cars & Purple Pickles: An Auto Biography
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Ultimate Performance Cars: Fast. Faster. Fastest.

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Posted by Naresh Koshti on 8 June, 2009 2:25:11 PM IST #