Hyundai to Build Second Assembly Plant in India Thursday February 17, 12:47 pm ET - New Plant Will Add Additional Annual Capacity of 150,000 Units -
SEOUL, South Korea, Feb. 17 /PRNewswire/ -- Hyundai Motor Co. has announced it will build a second assembly plant in India. Hyundai Motor Co. Chairman and CEO Chung Mong-Koo made the announcement during an inspection tour of the company's manufacturing complex in the southeastern port city of Chennai.
The new Hyundai Motor India Ltd. (HMIL) plant will have an annual capacity of 150,000 units and will be constructed on a 74.2 million square foot site adjacent to the existing facility at Chennai. Construction of the new plant is set to begin in April of this year and is expected to be completed by 2007. When the second plant is on-line, HMIL's annual manufacturing capacity at Chennai will be increased to a total of 400,000 units. In addition to serving the Indian market, output from Chennai's second plant will be shipped to Europe, Latin America and neighboring markets, including the Middle East region.
The new plant is scheduled to build the successor to the Santro, HMIL's highly successful minicar that has been a best seller. HMIL is targeting an Indian market share of 20 percent or more in 2007. With the quick rise in India's middle class and disposable income, India has become one of the fastest growing car markets in the world. In 2003, Indian car sales reached 650,000 units and grew to 800,000 units last year. This year, sales of 920,000 units are forecast. Based on recent growth trends, India's car market will grow to 1.15 million units by 2007, 1.45 million by 2009 and 1.62 million by 2010.
With this projected growth, the subcontinent has turned into a competitive battleground for the world's leading automakers. GM, Toyota and other automobile manufacturers are expanding their manufacturing facilities as well.
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