Hyundai to set its facility near to Tata Motors' in Gujarat.
Hyundai Motors India may soon be a neighbour to its domestic market competitor Tata Motors, as it is being speculated that the Japanese auto giants may finalize Gujarat for setting up its second manufacturing unit in India. As per the sources from the state, Sanand is an preferred destination for its second facility after Chennai.
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In India, Hyundai is planning to expand the company's operations and is ready to invest an amount of Rs 1,500 crore to Rs 2,000 crore for the company's second manufacturing unit. When asked about the company's development, JM Lee, the senior general manager of Hyundai Motor India Ltd., refused to comment on the same but he did not deny the information. Lee was present in Ahemadabad for the inauguration of the company's new showroom.
The Vibrant Gujarat Summit 2011 is on its way in few days time and it is likely that Hyundai will declare the expansion plans then. The news was revealed by the State government executives who stated that Hyundai looks forward to start its second manufacturing unit in Sanand. It is same place where Tata Motors has set up its manufacturing unit for Tata Nano.
Lee said that manufacturing at the Chennai facility is being utilized at its maximum which is 6 lakh cars every year. The Japanese auto makers are using 100 per cent of its installed capacity. He also said that, the company out of total production is shipping 50 per cent of its units in the international auto market and the remaining 50 per cent is sold in the Indian auto sector.
Hyundai anticipates that, there will be huge demand for its cars from the Indian auto sectors in the coming years.
Lee further added that, the company is planning to expand the capacity of the production but he refused to comment on the following. Nonetheless he did not deny the company's keen interest in investing in Gujarat.
Hyundai in India, rules the Indian auto market with its winning cars from hatchbacks to sedans. These car models are Hyundai Santro, Hyundai i10, Hyundai i20, Hyundai Verna, Hyundai Sonata and Hyundai Accent. The rumours are doing rounds in the auto industry that various big auto players are planning to set up its manufacturing unit in Gujarat such as the luxury sports leader Ferrari, the Japanese auto giant Honda and the American auto major Ford.
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