Hyundai India Postpones Investment Plans In New Plant
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The slowdown in the Indian auto market has also dented long term plans of automakers in India. Hyundai which was gearing up to set up a new plant in India has now postponed its plans by two or three years. Hyundai Motor India Managing Director (MD) & CEO, S.S. Kim told Times Of India in an interview that the company has sufficient production capacity to meet its domestic and global demand.
Kim also added that buyer sentiments in India are not very positive at present and it may take around three years to restore the volumes and meet the sales performance targets like 2018. For the time being, the Korean carmaker will continue to focus on new launches that have already started with the launch of the Grand i10 Nios and Aura subcompact sedan.
Hyundai Motor India has registered 37,953 units in the domestic market in December 2019, as compared to 42,093 units which is a de-growth of 9.8 percent. It’s domestic sales in the calendar year 2019 declined by 7.2 percent at 510,260 units as compared to 550,002 units which were sold in the calendar year 2018.
Questions & Answers
Q.What is the primary reason Hyundai has postponed its investment in a new plant?
What is the primary reason Hyundai has postponed its investment in a new plant?
Hyundai has postponed its plans due to the slowdown in the Indian auto market and negative buyer sentiments, with current production capacity deemed sufficient.
Q.How long does Hyundai expect it will take for sales volumes to recover to 2018 levels?
How long does Hyundai expect it will take for sales volumes to recover to 2018 levels?
Hyundai's MD & CEO, S.S. Kim, stated that it may take around three years to restore volumes and meet sales performance targets like 2018.
Q.What will Hyundai focus on in the immediate future instead of building a new plant?
What will Hyundai focus on in the immediate future instead of building a new plant?
The company will continue to focus on new vehicle launches, with the Grand i10 Nios and Aura subcompact sedan already introduced.
Q.By how much did Hyundai's domestic sales decline in December 2019 compared to the previous year?
By how much did Hyundai's domestic sales decline in December 2019 compared to the previous year?
Hyundai's domestic sales in December 2019 declined by 9.8 percent, registering 37,953 units compared to 42,093 units in December 2018.
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