Hyundai to launch two models in India every year

Our Corporate Bureau
17 June 2006

Mumbai: Hyundai Motor India is planning to launch two new models every year in India that would include diesel cars and a 1.2-litre engine hatchback. Hyundai Motor India M D Heung Soo Lheem said the company is chalking out an aggressive strategy for the Indian market. "Every year, we will launch two models, that may include variants," he said.

The company is planning to launch a diesel version of 'Sonata Embera', Hyundai's premium sedan, by the last quarter of this year while the mid-size 'Verna', is on the cards. Lheem said Hyundai is working on both the petrol and diesel variants of the car. He also ruled out stopping production of the mid-size 'Accent' after the 'Verna' launch.

Lheem said the Accent had a good demand in export markets and around 10 per cent of production last year was exported to countries like Algeria and Morocco. He said the company's small car, 'Santro', is currently facing a capacity constraint and has an export backlog of 21,000 units.

Hyundai has a current capacity of 2,50,000 units per annum and is scaling up production to 3,00,000 units by operating a third shift at its Chennai plant. He said Hyundai is setting up a 3,00,000-unit second facility which is likely to be operational by October next year.

Lheem said Hyundai expected sales to be around 3,00,000 units this year against 2,50,000 last year, adding that around 2,00,000 units will be sold in the domestic market while the rest will be through exports.

He said the company is looking for a suitable replacement for B V R Subbu who exited as president of Indian operations. Since Hyundai India is an Indian company it would ideally have an Indian face to deal with dealers, employees and the government, he added.