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Sriperumbudur, June 7 Hyundai Motor India is studying the feasibility of setting up a diesel engine plant close to its existing car manufacturing plant near Chennai.
The second largest car maker in India also said that if the Government increases excise duty on cars during its Budget announcement in July, it could lead to an immediate drop in car sales in the country.
The Hyundai Motor India Managing Director, Mr H.S. Lheem, said car sales were showing signs of recovery as May results had shown, but any increase in excise duty could neutralise the recent gains.
Mr Lheem said he expects the Indian operations to post a 15 per cent increase in revenues this calendar year from $4 billion in 2008.
“We have initiated a feasibility study for setting up a diesel engine plant,” Mr Lheem said. He did not give further details about the study.
Hyundai Motor already has a petrol engine plant which makes Kappa engine at its Sriperumbudur plant near Chennai. The Kappa engine, which is fitted into the i10 car of Hyundai, was developed at a cost of over $400 million. Mr Lheem said the company expects to sell about 5.8 lakh cars during this calendar year, which is an increase of slightly over 18 per cent over the previous year.
Exports
Out of 5.8 lakh cars, about 3 lakh cars will be exported including to some European countries. Hyundai’s market share in India during 2008 was 20.4 per cent which it expects to maintain during the current year. Mr Lheem said Hyundai Motor has two plants at its Sriperumbudur site with a combined total capacity of 6 lakh cars but with three shifts, it can produce up to 6.3 lakh cars.
“We have been receiving more export orders of late which means our exports will outpace domestic sales at present,” he said. Hyundai is the largest exporter of cars from India and it mostly exports i10 and i20 models. Since January, Hyundai has increased the shifts to two, consisting of nine hours each and from July, it will increase the number of shifts to three consisting of eight hours each at its first plant.
Mr Lheem said the company’s R&D centre in Hyderabad was performing well and the company plans to increase the headcount there to 800 from 200.
Hyundai Motor India also plans to launch a new mini-car sometime in 2011 in the entry-level segment, though Mr Lheem ruled out the possibility of launching i30 model in the country for now.
Source http://www.thehindubusinessline.com/2009/06/08/stories/2009060851510100.htm
The second largest car maker in India also said that if the Government increases excise duty on cars during its Budget announcement in July, it could lead to an immediate drop in car sales in the country.
The Hyundai Motor India Managing Director, Mr H.S. Lheem, said car sales were showing signs of recovery as May results had shown, but any increase in excise duty could neutralise the recent gains.
Mr Lheem said he expects the Indian operations to post a 15 per cent increase in revenues this calendar year from $4 billion in 2008.
“We have initiated a feasibility study for setting up a diesel engine plant,” Mr Lheem said. He did not give further details about the study.
Hyundai Motor already has a petrol engine plant which makes Kappa engine at its Sriperumbudur plant near Chennai. The Kappa engine, which is fitted into the i10 car of Hyundai, was developed at a cost of over $400 million. Mr Lheem said the company expects to sell about 5.8 lakh cars during this calendar year, which is an increase of slightly over 18 per cent over the previous year.
Exports
Out of 5.8 lakh cars, about 3 lakh cars will be exported including to some European countries. Hyundai’s market share in India during 2008 was 20.4 per cent which it expects to maintain during the current year. Mr Lheem said Hyundai Motor has two plants at its Sriperumbudur site with a combined total capacity of 6 lakh cars but with three shifts, it can produce up to 6.3 lakh cars.
“We have been receiving more export orders of late which means our exports will outpace domestic sales at present,” he said. Hyundai is the largest exporter of cars from India and it mostly exports i10 and i20 models. Since January, Hyundai has increased the shifts to two, consisting of nine hours each and from July, it will increase the number of shifts to three consisting of eight hours each at its first plant.
Mr Lheem said the company’s R&D centre in Hyderabad was performing well and the company plans to increase the headcount there to 800 from 200.
Hyundai Motor India also plans to launch a new mini-car sometime in 2011 in the entry-level segment, though Mr Lheem ruled out the possibility of launching i30 model in the country for now.
Source http://www.thehindubusinessline.com/2009/06/08/stories/2009060851510100.htm
