Getting back to speed

Hyundai Motor India Limited (HMIL) had a relatively sombre year, with domestic sales climbing only 3.8 per cent over the April-December period. Other than the launch of the i10 small car in December, most of 2007 was mainly spent preparing for 2008. But last fortnight HMIL opened its second plant at its existing facility at Sriperumbudur near Chennai.

This plant, which will see 100 per cent of spot welding, 90 per cent of sealer application and 50 per cent of CO2 welding being done by robots, will double Hyundai’s capacity to 600,000 units annually.

“We had reached our installed capacity of 300,000 units in 2006 itself, and in 2007 by improving efficiencies we managed to produce 327,000 units. If we had to keep up with demand, this was not enough. So the new plant was a must,” says Hueng Soo Lheem, Managing Director, HMIL.

The new plant will play a critical role in Hyundai’s plan to make its Indian subsidiary the hub for small car exports, says Lheem.

— Kushan Mitra