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India To Become Global Production Hub For Hyundai Verna
Hyundai is all set to shift the global production of Verna from Korea to India.
South Korean auto major Hyundai recently launched the new fifth-gen Verna In India. Now, Economic Times reports that the automaker is shifting the global production of the Verna from Korea to India.
In-line with the 'Make In India' initiative, Hyundai will use the Chennai manufacturing plant to supply the mid-sized sedan to all the global markets starting from January 2018.
Hyundai India MD, YK Koo said that the company is planning to produce around 1.3 lakh units of Verna per annum over the next two years. 60-70 percent of the production will be exported to various global markets.
Hyundai India's contribution to the company's overall production volume grew from 12 percent in 2015 to 13 percent in 2016. India is also a major contributor to the overall profits behind the Czech Republic.
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Koo also stated that initially Hyundai is aiming to produce 50,000 units of Verna for the Indian market and 60,000 units for the export markets and ramping up the production to 80,000 units in a later phase.
The reason behind shifting the global production of Verna to India is to utilise the low cost of manufacturing. It also allows the company to reach a quicker break even on Indian projects.
Other global automakers are also making use of low cost of manufacturing in India. Fiat Chrysler Automobiles recently commenced the production of Jeep Compass at its Maharashtra production facility. The company plans to export the SUV to right-hand-drive markets.
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Verna is one of the important product for the South Korean carmaker. The sedan has already garnered over 7,000 bookings in the country. Now, the automaker is set to make India as the global hub for the production of the mid-sized sedan. It will also boost the Make In India initiative and create more employment opportunities in India.
