Hyundai, the world’s fifth largest automaker, is planning on using India as its small car hub.
“We have a very clear picture about the Indian market. We want to use India as our small car hub. India will be used for manufacturing and export of our small cars,” Heung Soo Lheem, managing director of Hyundai Motors India said.
Hyundai sells its cars in 193 countries and will be looking to expand its small car sector. It recently launched the i10 offering, which was a new addition to its “A” segment, as an Indian-manufactured model. There is also word of an i20 model, which is a hatchback sedan in the “B” segment for Hyundai. That model, too, will be manufactured in India.
The South Korean automobile giant sold 327,160 vehicles in India in 2007 and had doubled its assembly line at the Chennai plant to 600,000 units annually this January. This massive growth for Hyundai puts India at or near the top of the list of Hyundai’s best places for expansion, so the move most certainly makes sense on a long-term basis.
How Hyundai’s attention to India will impact other markets remains to be seen, of course, but the attention given to the location is likely going to lead to growth in other areas as well. Hyundai dealer outlets around the world may feel the growth of Hyundai’s small car sector, as the global move towards more fuel-efficient vehicles shows no signs of slowing down.
