Hyundai plans 6 lakh units annual output by '07

Rolling out its one millionth car in India in 90 months, Hyundai Motor India Ltd (HMI) today said it plans to enhance annual production to six lakh units after completion of its second plant by 2007-end.

At present, HMI has an annual production of 2,80,000 units at its Sriperumbudur facility and would increase it to 3 lakh units soon, said Heung Soo Lheem, MD and CEO.

"The second facility will be on a 50:50 ratio for the domestic and export market," he said, adding Hyundai wanted to make India the manufacturing hub for small cars.

Hyundai will introduce two new models every year in India from 2007. In September 2006, the company plans to launch the "highly successful model and the newly designed" accent and follow it up with the introduction of a diesel variant of the luxury car Sonata.

HMI is the wholly-owned subsidiary of Hyundai Motor company.

"The company would invest about $500 million on the new plant and about $100 million would be invested by the vendors, " said B V R Subbu, president, HMI.

"About 17 vendors from Korea will be investing in the new plant. We are also planning to bring in seven to eight more vendors to invest in it," he added.

Subbu said HMI had started a third shift to meet the demand from domestic and global markets. The third shift was introduced last week and HMI had recruited 1,000 people for the operations.