Hyundai to invest heavily in India

Hyundai is going all out to expand in the Indian market, which has become the second biggest after the South Korea for the Asian Automobile giant. They are quite confident of touching the 1 million sales figures this year and have announced plans to invest as much as USD 700 million over the next three years to expand production of cars in India.

This news was disclosed by the Hyundai Motors (India) President, B V R Subbu who said in a statement: “Achieving the one million mark will be very critical for the company. We should achieve it in March 2006. Till now, the company has sold 850,000 cars in India in various segments.”

The company has a current production of 2.5 lakh vehicles which they plan to raise to four lakh in the coming years. They are also planning to setup a R&D center in India along with increasing production of vehicles in India. The company has indicated that India is going to be one of their major focus points in the future, as it is emerging out to be big for them.

Hyundai, the parent company has almost reached a saturation point in the domestic market in South Korea as they have already captured almost 70% market share. Expanding into other countries is a logical next step for them.