Annual production goal may be met after 2020; firm studying prospects of introducing an EV by 2019

Hyundai Motor India Ltd., (HMIL), India’s second largest car manufacturer, would cross the one-million mark in car production after 2020, according to a top official.

“This year, we will produce and sell seven lakh units of which 25% will be for export markets,” said Y.K. Koo, managing director and chief executive officer, Hyundai Motor India. “This would be followed by 7.50 lakh units next year. We will cross the one-million mark after 2020.”

Last year, the company produced 6.78 lakh units.

“During 2019, we plan to increase the production by 50,000 units through debottlenecking and increasing per hour output,” said Mr. Koo. “We have already increased the per hour output to 58 units from 45 earlier and are planning to increase it to 60,” he added.

In the last 20 years, HMIL had invested about ₹21,000 crore in its two plants at Sriperumbudur, near Chennai. Currently, the firm had an annual installed capacity of seven lakh units.

Queried if the auto major would be going in for a third manufacturing facility, he said: “For a greenfield project, we need at least two lakh units extra [production]. We will think about it after 2020.”

According to Mr. Koo, HMIL contributed to about 15% of Hyundai’s global volume and is expected to maintain the momentum.

New models

The South Korean car maker would deploy ₹6,500 crore over three years for development of nine new models. As per schedule, HMIL would start unveiling the new models from 2018.

This includes ‘two facelifts,’ two new segment products, four full model changes and an electric vehicle (EV). During the current year, HMIL planned to roll out two upgraded cars and a new ‘family-oriented’ car before Diwali.

The family-oriented car would be positioned between Eon and Grand i10. Mr. Koo, however, said the company had not yet finalised the name or the product.

The company was also planning to unveil an electric vehicle by 2019. Currently, it was carrying out a study in New Delhi, Mumbai and Bengaluru to find out whether to roll out EV-sedan or EV-SUV.

Recently, at the New Delhi Auto Expo, HMIL showcased Kona electric sedan which it was planning to bring to India in a completely knocked down condition. “We are targeting to sell around 50 units a year to start with,” he said.