Hyundai launches i10 from India

New Delhi: Hyundai Motor Company is not only looking to leverage India’s manufacturing capabilities to expand its presence in the global market and consolidate its presence in the premium compact car segment in the domestic market, but also enhance its research and development carried out from India.
The company on Wednesday unveiled its first car, i10 launched from India for the global markets.
“The new car will be a debut from India. It will be manufactured only out of the India plant,” said Hyundai Motor Company President, Mr Jae Kook Choi. Hyundai is currently the largest exporter of cars from India and with its second facility becoming operational, the country would become its largest base outside South Korea.
Mr Choi said that the company would be investing $40 million in expanding its research and development facility in Hyderabad and will employ 800 local engineers by 2009.
The company already has one centre with 100 engineers in Chennai. “We are investing in Hyderabad to set up a fully integrated R&D automotive facility to develop fully conceptualised cars that can be manufactured and exported from India,” said Mr Choi.
Hyundai Motor India Ltd, President and CEO, Mr H.S. Lheem, said that “By July, our second plant will be operational. This would increase our capacity to 5.3 lakh cars by next year, out of which 50 per cent will be exported and the remaining 50 per cent will be sold in the domestic market.”
The company that has currently about 18 per cent of the domestic market share has set a modest target of 20 per cent by next year. Commenting on future launches that could possibly take Hyundai's share closer to largest car maker, Maruti Suzuki, Mr Lheem said, "We have promised our dealers two new models every year for the domestic market. Yes, 20 per cent market share is a conservative target. But may be we can have another target after we achieve this."
HMIL is also setting up an engine and transmission facility at the same location where its second plant would be operational.
Bullish on the compact car segment, the company launched its i10 at a price between Rs 3.39 lakh and Rs 3.98 lakh (ex-showroom Delhi) for the domestic market with a 1.1 litre petrol engine.
"Within the compact car segment that accounts for 70 per cent of the cars sold in India, mid size segment is growing at 54 per cent. While Santro is positioned as a low end compact car, i10 will be positioned in the premium category," said Mr Arvind Saxena, Sales and Marketing, HMIL.
The diesel variant of the car is expected by January next year for exports and later for the domestic market, said Mr Lheem.
thehindubusinessline.com