Subbu: Racing ahead

Seoul, May 11 (PTI): Hyundai Motors India Ltd, a subsidiary of the Korean auto giant, will touch the one-million mark in car sales in India by March 2006. It is also planning to invest about $700 million over the next three years to expand the production capacity at its plant near Chennai.

HMIL president B. V. R. Subbu said, “Achieving the one-million mark will be critical for the company. We should be able to do it by March next year. Till now, the company has sold 850,000 cars in India in various segments.”

The company has also planned to pump in over $700 million at its Chennai plant to increase the manufacturing capacity to 4 lakh units annually from 2.5 lakh now.

“We are working on a plan. The feasibility report is being prepared to look at various options, including investments and setting up of a research and development centre,” Subbu said.

Commenting on the developments and increasing competition from other car makers, especially Maruti in the mid-size segment, Jae-Il Kim, senior executive vice-president (international business division) of Hyundai worldwide, told visiting journalists that the company is “ready to compete” in every segment.

“Our focus is certainly going to be on quality and not quantity,” he said. “All future plans are being prepared and would be known once the feasibility study is completed,” he added.

Both Lee and Subbu indicated that India was emerging as a major market for the auto major.

The investment of $700 million would include about $550-million direct infusion and $150-170 million by vendors, Hyundai officials said.

With the sales of Santro, Hyundai’s small car, growing at about 37 per cent year-on-year, the company has to expand its R&D activities in the country.

“We are approaching the critical mass in India and will soon announce our future plans,” Subbu said.