 Hyundai-Kia Automotive Group Chairman Chung Mong-koo, center in the front row, raises his fist along with company officials and Indian car dealers during a ceremony marking the inauguration of Hyundai Motor India’s second plant in Chennai, India, Saturday. / Courtesy of Hyundai-Kia Automotive Group |
By Ryu Jin
Korea Times Correspondent
CHENNAI, India ― Hyundai Motor, the top South Korean automaker, opened its second plant in India Saturday in a bid to grab a bigger slice of the pie in one of the world's fastest-growing automobile markets with its ``i10'' compact cars.
Located in Sriperumbudur, near the southern Indian city of Chennai, the new plant of Hyundai Motor India (HMI) will double the carmaker's annual production capacity to 600,000, second only to leader Maruti Suzuki India's planned expansion to 1 million by around 2010.
``Our new plant will be a platform for future growth,'' Hyundai-Kia Automotive Group Chairman Chung Mong-koo said in an inauguration ceremony. ``I am sure Hyundai Motor India will play its role perfectly as a global manufacturing hub for all of Hyundai's smaller models.''
He added that the newly built facility, adjacent to the existing facility, would largely be dedicated to the production of the new ``i10'' for local and export markets. Launched last November here in India, the i10 swept four ``2008 Car of the Year'' awards out of five in the country recently.
Hyundai Motor, which forms the world's sixth-largest automotive group along with affiliate Kia Motors, has been banking on new models such as the luxury ``Genesis'' sedan and new factories in markets such as China and India as part of efforts to boost sales by 20 percent this year.
HMI sold a total of 327,160 vehicles in 2007, up 9 percent from the previous year. Sales of models such as the ``Santro'' and ``Getz'' hatchbacks ― ``Atoz'' and ``Click,'' respectively, in South Korea ― rose 8 percent on the domestic market, while exports jumped 12 percent.
But the company, which is in talks to launch commercial vehicles in India within a year, is expected to face a tougher fight from India's third-largest carmaker Tata Motors, which will churn out the ultra cheap ``Nano,'' priced at just over $2,500, later this year.
HMI invested $528 million (roughly 498 billion won) for the 176,000-square-meter second plant. The company's original plan calls for investing $1 billion in its next phase of expansion until 2013 to beef up operations in the country.
India's automobile market, which stood at around 1.26 million last year, is expected to grow about 18 percent to 1.5 million this year. Experts expect the figure would reach 2.3 million by the year 2010.
``We have a high anticipation for the Indian market, which we consider has the highest growth potential among all automobile markets around the world,'' Hyundai Motor President Choi Jae-kook told reporters. ``Soon, the era of motorization will come.''
With the completion of the second factory, HMI aims to sell 530,000 vehicles ― 273,000 in India and 257,000 outside ― in 2008. HMI is expanding its dealer network from 230 to 300 and plans to export its products to 90 countries, up from 73 now.
Besides Chung and other high-profile Hyundai Motor officials, Kalaignar M. Karunanidhi, chief minister of Tamil Nadu, and many other dignitaries and guests attended Saturday's inauguration ceremony.
jinryu@koreatimes.co.kr
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