The Hindu Business Line : Hyundai begins recruiting, training for new plant

Expansion plans
Hyundai has recruited over 700 workers and started training them for the new car plant.
The new plant with a capacity of 300,000 cars a year would start prototype production in January 2007.
The existing model and the new model would continue in the market.

Chennai , Sept. 27

Hyundai Motor India Ltd will produce a "twin model of Santro" at its new plant that is expected to commence production early next year, according to Mr H.S. Lheem, Managing Director, Hyundai Motor India.

Company officials said that Hyundai has started the recruiting and training of workers for the new car plant. The existing plant employs over 2,000 workers, the official said.

Addressing reporters at the launch of Verna here on Tuesday, he said that the new plant with a capacity of 300,000 cars a year would start prototype production in January 2007. By the middle of October 2007 it would start production of a twin model of the Santro, Hyundai's small car. The existing model and the new model would continue in the market, he said.

Market share and Exports

With the capacity addition from the new plant, Hyundai's production capacity would double. The company's market share as of today was 18.5 per cent and by the end of this year it would be 20 per cent. The company hopes to corner 25 per cent market share in a couple of years, he said.

Exports would also increase, Mr Lheem said. Hyundai exports about 1,00,000 cars out of its total production of 3,00,000 now and the rest is sold in the domestic market.

By 2008 when the additional capacity would also be in place, exports would be about 50 per cent of its production. This would set its Indian operations firmly as a small car hub for Hyundai exports. Export revenue was now `around $600 million' (Rs 2,700 crore) — less than a third of its revenue of Rs 9,000 crore, he said.

Choice For Customer

The company is planning to offer wider choice for the customers with its existing models of Santro, Accent, newly launched Verna and the yet to be launched small car.

Mr Lheem said that Hyundai would continue with the Accent in the market despite introducing the Verna in the same class.

The Accent and the Verna together would increase volumes with the company going in for differential pricing.

While the Verna, is for the upwardly mobile and those willing to experiment, the Accent is for the conservative who prefer to stick to the tried and tested.

Officials said that the company plans to recruit over 2,000 workers for the new production facility.

Recruitments have started and the recruits are being trained here and abroad to bring down the lead time in commencing production.

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