Hyundai plans export of 'completely knocked down' kits

RELATED NEWS Hyundai cumulative sales up 28.2% in July, 2008 Hyundai Motor India ships 1st DKD consignment to Sudan Hyundai launches new Kappa engine Maruti, Hyundai woo rival car owners BSE | NSE 10/02/12

Chennai, Aug. 28

Hyundai Motor India Ltd, the country's largest exporter of passenger cars, now plans to export vehicle kits in 'completely knocked down' condition.

To do this, Hyundai India is investing $50 million (Rs 200 crore) to create a new press shop at Sriperumbudur, the company's Managing Director, Mr H.S. Lheem, told Business Line today.

In 2007, Hyundai exported 1.27 lakh cars. Mr Lheem said that exports in the form of kits could start from July next year, with a volume of about 30,000 kits initially.

Alongside, Hyundai will also expand its engine-making capacity by one lakh engines. At present, the company can produce six lakh engines. Mr Lheem said that this would not call for any major investment.

Hyundai has targeted production and sales of 5.3 lakh vehicles in the current year and six lakh in the next. Therefore, next year, the company would need all the engines that it produces, leaving little room for exports.

contd on page 2...