Chennai: South Korean car group Hyundai seems to be fixated on `i'' series
cars. The group''s Indian subsidiary Hyundai Motor India Limited yesterday held
the global premiere of its new compact car, the i10, in Mumbai. (See: Hyundai
adds style to the "A" segment with the i10). The model will
be launched in other markets later.
Korean group also plans to introduce a model called i20 replacing Getz sometime
in 2008. In addition the group is designing a sedan to be called i30.
Heung Soo Lheem, managing director and CEO, "The group has plans to launch
a new car in the `B'' segment. The model will be made in India for the global markets."
The Korean group has designated India as its global hub for small cars. Presently
Hyundai Motor India and ships out Santro and Getz.
company says its export thrust will be high from next year onwards when i10 will
be launched in the European markets. Moreover, the Korean group plans to use the
Indian plant to cater to the global markets of i10.
to Lheem, the Indian company would roll out 5.3 lakh cars during 2008. "Fifty
per cent of the production will be exported. And 40 per cent of the production
will be of i10 model." The current export order book position for i10 is
about the i10 cannibalising Santro sales, Arvind Saxena, vice president, sales
and marketing, says, "There will be some cannibalisation. But it will not
be a major worrying factor. Santro will be first car of choice for the buyers."
hopes to sell around 2.3 lakh units next year both exports and domestic markets
Eyeing tax incentives.
Hyundai Motor India is also trying to secure incentives from the Tamil Nadu government
under the state''s ''ultra mega integrated automobile projects policy''.
policy announced early this year offers attractive incentives to vehicle manufacturers,
existing and new, who invest over Rs40 billion over a period of seven years from
the date they sign the memorandum of understanding (MoU) with the Tamil Nadu government
or any other date specified by the government.
incentives include allotment of land at reduced rates, stamp duty exemption, dual
feeder lines for power supply, exemption from electricity tax for 10 years and
refund of gross output value added tax and central sales tax for 21 years or up
to 115 per cent of eligible investment.
to Lheem, Hyundai Motor India is implementing an expansion programme at an outlay
of over Rs6,000 crore.
investment programme includes setting up a new car plant and also building a new
engine and transmission plant at its existing location near Chennai.
phase II expansion project is eligible for incentives under the government''s policy
and talks are on with the officials in this regard," Lheem remarks.
back in 1996 when Ford India and Hyundai Motor set up their production plants
near Chennai, the Tamil Nadu government offered them attractive and identical
sales tax incentives.
the years, Hyundai Motor has benefited from the incentives as its volumes were
far higher than Ford India''s.
Hyundai Motor got its India plans right at that time, it remains to be seen if
this time it has caught the stick from the wrong end.
Tata Motors announcing its Rs1-lakh car and the Renault-Bajaj combine too working
towards a $3000 car, Lheem categorically says the company is interested in a public
car and not in cheap car.
are interested in developing a car that would be cheaper than the current models
and suitable for developing markets," he adds.
the other hand he says the Indian company is not interested in getting into the
light commercial vehicles segment.
out a 1-tonne commercial vehicle to compete with Tata Ace at its price point is
very tough," he explains.