Hyundai invests a total $1.7 bn in India

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After making a billion dollar investment for India-Korean carmaker Hyundai may already be thinking of putting more money onto desi roads. CNBC-TV18's Sumantra Barooah finds out what is on Hyundai's driveway.

 

Hyundai's latest expansion budget of USD 1 billion, to double its production scale, takes its total investment in India to USD 1.7 billion.

 

From an annual production capacity of a little over 1.25 lakh units in 1996, to an annual volume of 6,00,000 now, Hyundai has come a long way in India. While this newly commissioned plant currently rolls out only one model-the i10, it has been designed to roll out three more models.

 

That could include the i20, to challenge the likes of Honda's to-be-launched big compact car 'Jazz'. This is part of its plan to expand its portfolio every year.

 

"There will be two models per year. Not necessarily in the small car segment, but in the overall range. At the same time, we want to do distinct products," said Arvind Saxena , Senior VP, Hyundai Motor India .

 

They would be in the green fuel options for the Santro , Getz Prime and the Accent. With all these and the addition of another 17 export markets, the Korean car major is likely to run out of capacity and there could be another round of investment for expansion by early 2010.

 

"It is too early to say. Going forward, by this year's utilisation of capacity, we could possibly think on those lines," said Arvind Saxena.

 

Increased investments will be crucial for Hyundai, which wants to increase its current market share in India, from the current 17% to 20% this year. With help from its export hub, Hyundai is eyeing a 20% increase in sales globally during 2008.