Hyundai, the Korean car manufacturer and India's largest car exporter has stopped building and exporting cars to Europe from the Chennai factory. Hyundai will concentrate on manufacturing here to cater to the needs of the Indian market.
Taking this step, the company will drop their export numbers by 25 percent, from 2.53 lakh units to 1.9 lakh units.
Hyundai, being the largest exporter of cars in India, accounts for 45 percent of the country's total car exports.
The company's manufacturing facility in Chennai has the capacity to manufacture 6.8 lakh cars per year and the factory was running at 98 percent usage for exporting cars.
Hyundai will start making the European-spec cars, the i10 and the premium hatchback i20 in their plant located in Turkey and the Czech Republic.The all-new Elite i20 will be manufactured here as well.
After the launch of four new models since last year, the Korean carmaker wanted more room to make these models here in Chennai which are sold in the Indian market.
Hyundai will still keep India as its global export hub for small cars. They will still export cars to Latin America, Middle East, Asia and Australia from the Chennai plant.
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