Friday, November 20, 2009

Hyundai India earmarks Rs. 800 crore for its upcoming entry-level car


In its aim to scale up its presence in the small car segment, Hyundai Motor India Limited (HMIL) will be investing nearly Rs. 800 crore for its upcoming new 800cc car in the domestic market. Furthermore, research and development (R&D) centre of the new car is under joint development at R&D centres in Hyderabad and Namyam (Korea).

The Indian arm of the South Korean auto giant has indicated that unlike the Maruti 800, which is only sold in the domestic market, HMIL would cater to domestic and export markets. Hyundai India has, however, clarified that its entry level car will not compete with the Nano. Like i10, i20 and Santro, the unchristened small car will be solely manufactured at the company’s facility in Chennai and will be positioned a notch below Santro.

"We are developing a small car and approximately Rs 800 crore will be invested at the Korean plant for development," newly-appointed managing director and CEO of Hyundai Motor India Ltd (HMIL) Han-Woo Park told reporters in Chennai. Even though he didn’t provide any details, he said, "It will be smaller than the Santro and the price will also be lesser. It will take at least 24 months from now to launch the car in India. Right now, it is in the design stage."

It may be recalled that H. S. Lheem, the erstwhile managing director & CEO of HMIL had said that the company has enough space at its existing 535-acre Chennai unit for the venture and will roll it out from its existing location.

Hyundai India has also affirmed that it has no plans to phase out its best selling Santro, and Park also confirmed that the proposed small car would be manufactured in Hyundai's Indian plant. He told reporters, “By entering into the small car segment, the company proposed to increase its volume of sales," he said adding it was also looking for other models.

source: wheelsunpluged