Hyundai considers more small car output in India

24 October 2006

Mumbai: Leading South Korean automaker Hyundai Motor Co, today said that it was considering hiking the output of its small car in India in order to cut costs.

However, the company says that it had no plans to shift production out of the home country. Hyundai is expected to focus on higher-end vehicles that yield higher margins in Korea where the company faces higher labour costs and to produce cheaper models at its overseas plants in India and China.

Hyundai has a capacity to make 300,000 cars in India and completes another plant this month. It also plans to build a new follow-up model to the Santro small car, which has been its flagship in India.

Hyundai is considering shifting its production line of the Getz to India by the end of 2007 and use the line to produce cars for exports. Last year Hyundai produced 200,903 Getz cars in South Korea and 15,151 in India.

Hyundai is believed to be considering shifting half its production to its overseas plants.