South Korea’s Hyundai Motor group, the fifth largest automaker in the world, recently announced it was considering the prospect of constructing a third assembly facility in India.
The group, consisting of the namesake Hyundai Motor and affiliate Kia Motors, is showing its eagerness to expand its global capacity output fast after the company had a self-imposed two-year long cap on lifting production. The conglomerate already has several new factory projects in development and showed signs it was ready to boost output as early as 2014, after using the past two years to lift quality of manufacturing. Kia is currently underway constructing a plant in Mexico, while Hyundai has started to build one of the two facilities planned for China, the world’s largest auto market and is also mulling a new factory in the United States.
According to the company, the Hyundai group chairman, Chung Mong-koo, had a meeting with Indian Prime Minister Narendra Modi in Seoul and media representatives were told a new production facility in India was currently prospected – though there was no final decision yet or even knowledge if it would be used by Hyundai or Kia. Hyundai is the second largest automaker in India by market share, behind Maruti Suzuki, already has two production facilities in Chennai, southern India, with a total production capacity of 680,000 units. Meanwhile, Kia has to contend with negligible sales because of the massive import duties – with analysts believing the carmaker could tap growth there to offset slowing demand in Russia, China and elsewhere.