India’s largest passenger car exporter, Hyundai Motor India Ltd plans to export vehicle kits in ‘completely knocked down’ condition. Hyundai India is investing Rs 200 crore to create a new press shop at Sriperumbudur for this project.
In 2007, Hyundai exported 1.27 lakh cars. The 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.
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. But there is a demand for Hyundai engines made in India, mainly from Hyundai’s sister company, Kia Motors, Korea. In the current year, Hyundai plans to export 25,000 engines to Korea which would increase to 70,000 next year.