South Korea’s Hyundai Motor targets a sales increase of 13 percent on the recovering Indian market in 2015, buoyed by surging demand for its range of compact models and sport utility vehicles.
According to a top local official of the company, Rakesh Srivastava, senior vice president, sales and marketing for Hyundai Motor India Limited, the South Korean automaker – the fifth largest in the world when taken into account with affiliate Kia Motors – is predicting deliveries would surge to 465,000 autos in India in 2015, with additional exports from its local production facilities remaining level at around 200,000 units. The total could put the local production capacity in India – set at 700,000 vehicles each year – close to 95 percent of capacity, hitting the profitability sweet spot. The company added it has not yet decided whether it would follow a production capacity expansion strategy, even as overall sales growth could be soon hindered by capacity limits.
The South Korean automaker is currently the second largest auto producer in India, behind market leader Maruti Suzuki and Hyundai saw 2014 sales growing 8 percent to reach around 5 percent of the global deliveries of the automaker. The expected growth could yield a 6 percent overall market tally for India in the carmaker’s global sales mix. Both Hyundai and its affiliate Kia Motors have predicted worldwide sales could modeslty rise by 2.5 percent in 2015 to a total of 8.2 million units, the slowest growth rate since 2003.