Hyundai Motor India Ltd (HMIL) has stopped exports to the European market to free manufacturing capacity for new cars the company is launching in the Indian market.
Models which are specifically manufactured for European countries would now be exported out of Hyundai’s facilities in Turkey and Czechoslovakia.
Rakesh Srivastava, senior vice-president (sales & marketing), HMIL said, “We stopped exports to Europe about a month back. Europe-specific models of i10 and I20 would now be shipped out of Hyundai’s facilities in Turkey and Czechoslovakia. We freed up capacity to cater to demand in the domestic market.” The company, which made the global debut of Elite i20 in India today, is looking at growing domestic sales by eight% to 410,000 units in 2014.
Exports out of the company’s facility in Chennai are set to decline by a fourth to 190,000 units this year. “Europe used to constitute 40% of our exports. But now we will focus on increasing our exports to countries in Asia, West Asia, Latin America, Australia and New Zealand”, added Srivastava.
The company's Chennai facility currently has the capacity to produce about 640,000 units per annum, which can be increased to 680,000 units with change in shifts.
The company today expanded its compact car portfolio with the launch of premium car Elite i20, priced between Rs 4.89 lakh and Rs 7.67 lakh (ex-showroom Delhi). Srivastava said, “Fundamentals of the economy have improved boosting consumer sentiments. We were selling around 3,800 units of existing i20 per month and now with the new version we would be happy if we are able to sell around 6,000 units per month."
The second generation i20 Elite will compete with the likes of Maruti Suzuki's Swift and Volkswagen Polo in India. The Elite i20 will be available in both petrol and diesel options. While the petrol version is priced between Rs 4.89 lakh and Rs 6.46 lakh, the diesel variants are tagged at Rs 6.09 lakh to Rs 7.67 lakh (ex-showroom Delhi).
Hyundai has invested Rs 1,050 crore to develop the new i20. Elite i20 will replace the existing i20. The Elite i20 was designed at Hyundai Motor's Design Centre Europe in Rsheim, Germany. The Elite i20, which is built on a completely new platform, is expected to further add to the company's strategy of enhancing volumes.
B S Seo, managing director and chief executive officer, HMIL said, "We remain committed to the Indian market. The all new Elite i20 would help further enhance the company's market share in India.”
In the January-July period of 2014, the company sold 235,432 cars in India, translating into a market share of 21.6%. During the same period last year, the company's market share was 20.4%.
