A Third Hyundai Motors Production Plant Planned for India?
As Hyundai’s success in the Indian automobile market continues to increase, the Korean automaker is preparing for the next step to maintain dominance in the market. This week, Hyundai officials in the brand’s home city of Seoul announced the company’s plan to build a third factory in India.
The announcement was made after Indian Prime Minister Narendra Modi visited South Korea to ask for global investors to consider manufacturing in India to increase local jobs.
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Hyundai India Considering Third Production Plant
After the meeting, Hyundai Group Chairman Chung Mong-koo stated the possibility of a third Hyundai assembly plant in India was under review. This comes after the automaker spent the past two years focusing on improving product quality rather than production quantity.
Currently, Hyundai’s two Indian plants can produce up to 680,000 vehicles annually, two-thirds of which are sold on the Indian market. This year, Hyundai intends to increase total sales but will need to increase production to compete against Maruti Suzuki, Ford, and Honda–who are all expanding or building assembly plants in the country.
This third production plant could be for either Hyundai (which has two plants in Chennai already) or Kia (which doesn’t have any in India). No word on which the facility would be used for.
News Source: Reuters