Hyundai to increase capacity for ensuring 22% market share

Hyundai, the South Korean car maker, is planning to adjust its present Indian operations for expanding the manufacturing capacity. The company is planning to do so because it is aiming to take its share to around  22% of all the cars which are sold in the domestic market. The total capacity of the company will be over 6.7 lakh cars in the coming  two years. In these years, the minor investment will also be done at the company’s twin plants at Chennai. Currently, the company has the capacity of  5.9 lakh units per year. The company is soon starting its third plant in China. It has not yet arranged a same plan for India as it has been going through a prolonged unrest among labours. HW Park, CEO & MD, Hyundai Motor India stated that Hyundai has got enough capacity to meet the demand of the market. 

Park also commented that the domestic demand is quite high and Hyundai can supply more because it is following a portfolio. So, in the domestic market, the company is exporting less and selling more. He further added that Hyundai is not thinking about a new plant as there is no production constraint presently. Park also stated that presently Hyundai is not relating its decisions of investment to that of its problems of labour. He further commented that the company has taken the decision of not relating the labour relations with the investment. The company is trying to resolve the issue with the help of the government of Tamil Nadu.

Park said that the company has agreed upon reviewing a meeting. The meeting is going on and the result is awaited. For the third plant of Hyundai at China, Park said that it would be done mainly due to the domestic demand. In India, presently, the volumes are split with 58% capacity for targeting the domestic sales and 42% for exports.

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