Hyundai Santa Fe CKD production to begin soon

Published: Thursday, May 26, 2011, 12:45 [IST]

The Hyundai Santa Fe was one model that Hyundai Motors India was hoping to conquer the SUV scene. Although it was received well by the Indian consumer, sales figures did not match expectations. The main reason for low Santa Fe sales was its high price tag. The high price tag was inevitable as the car was imported as a completely built unit (CBU).

Hyundai has now decided to assemble the Santa Fe in India in a CKD (Completely knocked down) form. This move will not only reduce the price of the car due to reduced taxes, Hyundai will be able to provide a viable competitor to the current market leader - Toyota Fortuner.

Hyundai has begun homologation tests of the car at its plant in Chennai. Such tests are conducted a few months before the beginning of local assembly. Hyundai's Director, Marketing and Sales Mr Arvind Saxena said: “Starting CKD operations for the Santa Fe is part of our plan. Typically, we would wait for volumes to touch at least 150 units a month for it to make sense economically. At present, we are doing about 100 units a month." the carmaker is expecting about 1,400 Hyundai Santa Fe sales this year.

Article Published On: Thursday, May 26, 2011, 11:44 [IST]

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