Financial Daily from THE HINDU group of publications
Thursday, Aug 18, 2005
Marketing - New Products & Services
Hyundai to invest $600 m in new plant, product development Launches premium sedan Sonata `Embera'
The Managing Director of Hyundai Motor India Ltd, Mr S.S.Yang, with the President, Mr B.V.R. Subbu, at the launch of `Sonata Embera' in the Capital on Wednesday. Kamal Narang
New Delhi , Aug. 17
HYUNDAI Motor India is planning to add about 2,000 new employees over the next year as it embarks upon a major expansion plan.
The company is planning to spend about $600 million towards setting up a second plant in Tamil Nadu and new product development.
"The workers will be used for our second plant, which should be completed by around May 2007," Mr S.S. Yang, Managing Director, Hyundai Motor India Ltd (HMIL), said on the sidelines of a press conference announcing the launch of the new Sonata `Embera'.
Mr Yang added that the company might be launching a couple of new models in the coming year, including one in the upper mid-size sedan segment. "This model has not been launched anywhere globally as of yet. Work on the model, codenamed HDMC, is currently on at the parent company's headquarters and is in the final stages," he said.
On the $600-million investment, Mr Yang said the funds would be raised mainly from internal accruals and borrowings.
Meanwhile, Mr B.V.R. Subbu, President, HMIL, said that the company is also looking at launching a new model in the compact car segment. The model would co-exist with its current offerings in the segment, the Santro and Getz. It is learnt that India may be the sole production base for this model.
Mr Subbu added that the company might increase the prices of its mid-size offering Accent and premium hatchback Getz next month. ``Prices of Accent and Getz will come up for review by the middle of next month,'' Mr Subbu said. Hyundai had increased the price of its flagship car Santro by as much as Rs 11,000 last week on account of increased input costs and rationalisation of dealer margins.
Meanwhile, in a bid to revive sales of its top-end model, Hyundai on Wednesday launched an all-new model of its premium sedan Sonata `Embera'. The 2.4-litre petrol engine car has been priced at Rs 13.69 lakh for manual transmission, while the automatic version will cost Rs 14.59 lakh.
``We hope to sell about 150 units of the car monthly,'' Mr Subbu said, adding that it will be assembled here after coming in through the semi-knocked down route. The redesigned Sonata has a localisation content of 15 per cent.
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