At a time when manufacturers are reportedly cutting production, Korean auto major Hyundai has said it would make India a hub for its Verna sedan for the global market. The company has invested around Rs 1,040 crore in the fifth-generation Verna.
Hyundai Motor India Limited
(HMIL) MD and CEO Y K Koo told the media that the Next Gen Verna was a major product for export, which would contribute more than the domestic market. The company's facility at Chennai would be a production hub for vehicles meant for the global market. Till now, Hyundai's Korean facility was catering to global markets apart from producing for local markets.
India would be the fourth production hub for the Next Gen Verna, following South Korea, China, and Russia (Solaris). These countries would continue to manufacture for the domestic market.
The company is targeting an annual production of about 130,000 units of the mid-size sedan in India in the next few years. The company also hopes to export 60 to 70 per cent of those units. Its factory, currently, operates at 95-98 per cent capacity, according to media reports.
Hyundai is hoping to manufacture around 50,000 units of Verna for the Indian market and another 80,000 units for global markets, including Latin America, Africa, Middle East, and other Asian countries, added reports.
With over 8.8 million customers across 66 countries, Verna is one of the most important brands for Hyundai globally. The company has sold around 318,000 units in India.
The Next Gen Verna has already received more than 7,000 bookings and 70,000 enquiries within 10 days of its launch. Hyundai has said that the first 10,000 Next Gen Verna deliveries would be made before Diwali.
HMIL is a wholly-owned subsidiary of Hyundai Motor Company
(HMC). HMIL is the second-largest car manufacturer and leading passenger car exporter in India. It currently has 10 car models across segments — Eon, Grand i10, Elite i20, Active i20, Xcent, Verna, CRETA, Elantra, Tucson, and Santa Fe.
HMIL’s fully-integrated manufacturing plant near Chennai forms a critical part of HMC’s global export hub. It caters to around 87 countries across Africa, Middle East, Latin America, Australia, and the Asia Pacific.