Rumour: Hyundai considering second plant in India

South Korean carmaker, Hyundai is rumoured to be considering setting up a new manufacturing unit in India.

Hyundai has plans to enter segments of the car market where it has no presence - the carmaker recently announced that it was gearing up to launch a compact SUV and an MPV in the country. To produce these vehicles, the company will need more manufacturing capacity. While the Chennai plant produces 6.8 lakh vehicles annually and can be stretched to a little over 7 lakh units, it does not have much scope for expansion. As a result, Hyundai has limited its production for export markets in favour of the domestic market.

Hyundai is believed to be scouting around in many states, one of which is Gujarat, which is likely to be the venue for plants of other auto majors like Maruti, Honda and Ford. The company plans to launch up to three vehicles every year including variants and upgrades.

Source: Economic Times