Hyundai India has set itself a target of producing more than 1 million cars (a two-fold increase in current sales) in India by 2020-21.
Inspired by the success of its’ Indian subsidiary, the Korean Hyundai is on the verge of the Indian entry of another of its’ unit, Kia Motors which is a small car specialist. With Kia’s entry, the group sees itself selling anywhere between 1 – 1.2 million vehicles per year in India.
India is expected to become the third largest car market in the world by 2020-21. Hyundai sold 4.65 lakh vehicles in the year 2015 and aims to have a total output of 1 – 1.2 million vehicles including local sales and exports. Kia is expected to rake in another 2 lakh units for the company in India.
Hyundai’s main rival, Maruti Suzuki had also announced earlier that it envisioned achieving annual sales of 2 million units by the end of the decade. It is being reported that the strategy of a Kia plant being setup in India was the plan of Hyundai Group Chairman Chung Mong-koo.
One of the key personnel from Hyundai added that the new Kia factory will bestow Hyundai with additional capacity at no extra cost and that the break-even for Kia will be reached faster due to combined capacity utilisation. He also stated that both the companies would benefit from the economies of scale.
Hyundai, owing to the demand of the Creta and the Elite i20 in local as well as global markets, has already revised the production units by 10,000 to 15,000 units to 6.65 lakhs for 2016. It sits on its highest domestic share ever in the last five years at 17.21%. Local sales are expected to reach the half million mark this year.
Hyundai recently announced its plan of launching two products every year. Hyundai, apart from launching the new Elantra and the upcoming new Tucson, will overhaul its entire lineup with new engines and transmissions. A sub-4 metre SUV, codenamed Qxi, and a new entry-level car, AH2 or the new Santro, are due in the next 2 to 3 years.
Hyundai India Aims 1 Million Unit Sales
– Hyundai sets itself a target of producing 1 million to 1.2 million cars in India by 2020-21
– It is on the verge of announcing the entry of Kia Motors, a small car specialist in India
– Hyundai sold 4.65 lakh cars in the year 2015 and expects to sell 5 lakh cars in 2016
– Current domestic market share of Hyundai is 17.21%
– A sub-4 metre SUV and new entry-level car is in the works
Source – ETAuto.com