Hyundai planning to set up second plant in India

Hyundai India is the second biggest automaker in India, after Maruti Suzuki. Although it is currently responsible for a large portion of the entire sales chunk, Hyundai is facing intense heat from rivals like Honda and Ford - brands that have been progressively active in the last couple of years. The Korean auto giant, then, has decided to go aggressive on new products and step in to newer segments.

According to a report by Economic Times, Hyundai India is contemplating a new manufacturing plant as it lines up heavy investments for its Indian operations. Furthermore, the company is planning to launch at least two to three new cars annually, first of which will be a compact SUV, followed by an MPV. 

The existing facility in Chennai is churning out 6.8 lakh units a year. This can be upped to a little over 7 lakh units, says Hyundai India MD & CEO B S Seo. However, there's a limited scope for expansion in the present facility and this is something which has forced Hyundai India to cut down on its export commitments.

Post the launch of the Xcent, the new Santa Fe and the Elite i20, Hyundai is now eyeing segments it has not ventured into yet. These segments include the compact SUV and the MPV categories. While news of the upcoming EcoSport-rivalling model has made a few headlines, not much is known about the MPV which will eventually form a part of Hyundai's future line-up. Nevertheless, one can expect both these new vehicles to be fairly stylish and loaded with features, just like the brand's existing lineup.

Source: ET