Following the depreciation of Indian rupee in late 2011, the import cost of cars and auto components for car manufacturers has risen and has compelled many of them to hike price prices or to implement localization of production at cheaper rate. Hyundai India is among those planning to go with the second option. It is considering localizing the production of its top-end cars locally to save on import duties. These cars include the Santa Fe sports utility vehicle and the new revamped Sonata sedan which is expected to be launched in 2012.
Until now the South Korean carmaker had been importing the top-end and premium cars as CKD (Completely knock down) or CBU(Completely built units). However, according to Mr. Arvind Saxena Director (Marketing and Sales), Hyundai Motor India the company has already initiated complete manufacturing of the Santa Fe SUV in India from August 2011 and is producing 225-250 units each month at its Sriperumbudur plant, Tamil Nadu.