The Telegraph
Tuesday , August 12 , 2014
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Hyundai export call

Hyundai Motor India managing director and CEO B. S. Seo in New Delhi on Monday. A Telegraph picture

New Delhi, Aug. 11: Hyundai Motor India Ltd has stopped exports from its Chennai plant to Europe after shifting production to Turkey and Czech Republic.

The move will result in around 25 per cent reduction in overseas shipments from the Chennai plant this year at 1.9 lakh units against 2.53 lakh units last year.

Officials said the company would focus on Latin America, West Asia, Australia and Asia from Chennai, apart from the domestic market.

“It has been about a month that we have stopped serving Europe, which will now be served by Hyundai plants in Turkey and Czech Republic,” senior vice-president (sales and marketing) Rakesh Srivastava said.

Europe has been one of the largest markets for Hyundai. Last year, Europe accounted for 40 per cent of exports from the Chennai plant, which can roll out 6.8 lakh units annually.

Srivastava said the step had to be taken to enable the Chennai plant to meet local demand. Capacity utilisation at the plant was 98.5 per cent last year.

“In the last one year, we launched four brands in India. Therefore, we needed to create capacity. Our priority is the domestic market. So when the Turkey plant became ready Hyundai decided to move export of the European model of i20 there. All the European models of the i20 and the i10 will now be served from Turkey and Czech Republic,” he said.

The company today launched the premium compact car Elite i20, priced between Rs 4.9 lakh and Rs 7.67 lakh. The car will compete with Maruti Suzuki’s Swift and Volkswagen’s Polo in India.