Hyundai India denies 3rd factory plan despite many reports

Jul 28, 2015, 12:16 pm

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Hyundai India officially denied reports claiming that the company is considering building a third auto plant in India

Hyundai Motor India is promoting recently launched compact SUV Creta through TV, newspaper, online, and outdoor signboards. The photo shows an outdoor signboard for Creta standing at the entrance of IGI airport in New Delhi./ Photographed by Ha Man-joo  

By Ha Man-joo, India correspondent, AsiaToday - Despite Hyundai Motor Group's official denial, it seems a new plant in India is under review.

Seo Bo-shin, managing director and chief executive officer of Hyundai Motor India, said, "We are still conducting a preliminary investigation for the feasibility of this issue. We will make a decision in the next few months." In an interview with India Economic Times on July 27, Mr. Seo said, "Hyundai Motor has a powerful expansion plan to meet the aspiration and expectations of customers."

Regarding the third plant, Hyundai Motor has been making its position clear that it is not reviewing it. The announcement made by chairman Chung Mong-koo about 'the third plant establishment' after meeting the Indian Prime Minister Narendra Modi who visited Korea on May 19, explains that Hyundai Motor Group is not reviewing the third India factory plan.

However, many Indian media outlets are keeping reporting on this. India's leading newspaper The Times of India reported on the 24th, "Hyundai has decided to pump in fresh investment of over Rs 4,500 crore for a new factory." According to the report, "Hyundai has been facing a capacity crunch at its existing facility near Chennai, but is now 'close' to finalizing a new premises which will house the new factory. States Gujarat, Rajasthan and Andhra Pradesh are lobbying with the company."
Regarding the third plant plan, an official from Hyundai Motor India told AsiaToday, "It's not a matter that Hyundai India can determine. Nothing has been confirmed yet."

Meanwhile, Hyundai India is focusing on sales of its compact SUV Creta, which was officially released on July 21. The company is promoting Creta through TV, newspaper, online, outdoor signboards, and more. In addition, it is looking forward to sell in rural regions as well.

Mizoram Post, which is published in Aizawl City of Mizoram State, reported on July 25 that Creta held an official launch event in a neighboring Guwahati City in the state of Assam in eastern India.

Hyundai Motor India holds a 17% market share in the Indian car market. The company is strong in rural areas.

In an interview with Economic Times, Mr. Seo said, "Rural sales contribute around 20% of our volumes. We are confident of our performance in rural market through a strong network of 320 rural sales outlets and strong products with brand assurance of ease of maintenance with lowest cost of repairs."

#Hyundai India #3rd factory #Creta #Seo Bo-shin MD 
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