Hyundai may make EVs at Chennai plant, increase capacity to 750,000 units

The company will strengthen its offerings with 8 new products, including an electric SUV, between 2018 and 2020

Hyundai Motor India Ltd (HMI), the Indian subsidiary of Korean automaker Hyundai Motor, plans to increase its Sriperumbudur facility's capacity by 37,000 units to 750,000 units.

Located near Chennai and spread over 535 acres of land, the plant is running at almost 100 per cent capacity utilisation. Its current capacity of 713,000 units will be expanded to 750,000 by 2019.  

The plant is gearing up to produce electric vehicles in India, said Hyundai Motor India MD & CEO Y K Koo.

He added that the company would strengthen its offerings with eight new products, including an electric SUV, between 2018 and 2020.   

Further, HMI has decided to send vehicles in completely knocked down (CKD) unit format to select export markets in the backdrop of their increased tax rates for completely built units (CBUs). Using the CKD format will also help the company get additional volumes at its Sriperumbdur facility to cater to the domestic market.

Koo said that CKD export started recently and that the company expected to send around 50,000 units by 2019 in that format. 

CBUs refer to vehicles that are directly bought in ready shape for sale, while CKD units refer to vehicles whose parts are officially imported from foreign countries and then assembled in the country of sale.

HMIL's facility near Chennai has been catering to nearly 83 countries, mostly by way of CBUs. After Vietnam and the Philippines increased tax rates for CBUs, the company started exporting vehicles in the CKD format.

Koo said that since more countries in Asia, Africa, and South America were increasing tax rates for CBUs, HMIL was planning to send its vehicles in the CKD format.