Hyundai Motor Company is planning to set up a new factory in India that will take care of its future product line. This information was revealed by the company’s chairman Chung Mong-Koo soon after meeting Prime Minister Narendra Modi in Korea.
Currently, the Korean manufacturer has two facilities in Chennai that manufactures its entire range. These facilities have a total production capacity of 6,80,000 vehicles annually. While the company is tight-lipped about its future models that is expected to hit the Indian market in next few years, this new facility could help them scale up their production capacity. This will prove very helpful when the car industry grows in the next few years.
"Hyundai Motor's Chennai plant is a symbol of Korea-India economic cooperation and I thank the Indian government for its support in Hyundai Motor's growth in the Indian Market. I hope in the future Hyundai Motor Group will be able to continue its cooperation with India in other areas such as construction and railway to play a more meaningful role in Korea-India's mutual economic development," said Chung.
Setting up a third factory makes complete sense for the company as its closest rival Maruti Suzuki is preparing to set up its new factory in Gujarat. This new facility is expected to keep Maruti in the top spot and if the second largest car manufacturer wants to take on Maruti, a very good product portfolio and ability to manufacture them is very important.