In a bid to increase the market share in the Indian car market, Hyundai is taking steps to expand its production. The company is eyeing on 22% share of the net car sale in Indian market. If it happens then the net production will go to 6.7lakh units in another two years and will involve an additional investment at Chennai plant. The plant’s current capacity is 5.9 lakh units per annum. However, Hyundai has installed its third plant in China for the same reason. In the Indian plants, the company has been hit by the labor issues for a quite longer time. The CEO&MD of Hyundai India said there is a long way to meet the demand from the domestic market. The company’s current strategy is to concentrate on domestic market more than the export segment(42%).
The new plant will come off depending upon the demand in the domestic market (58%) he added. If needed, 80% production will allocated for the domestic market. The company’s sale volume for the last fiscal was 2.8lakh units with 20% share in the net car market. There was an increase of growth by 21% with a sale of 1.4 lakh units during the first five months of 2010-11. He categorically denied the link between the labor issue and investment hesitations. He expressed the confidence of settling the score with labors aided by the local government.