“As the upcoming two new models will be manufactured at our Chennai plant, it will bring back utilisation to healthy levels in Chennai,” Tarun Garg, Managing Director & Chief Executive Officer, Hyundai Motor India Ltd., said in post-earnings call with analysts.
Hyundai said the two launches would expand its presence in the sports utility vehicle (SUV) category.
“Of these new launches, one will strengthen our position in mid-SUV segment while the other will mark the debut of our localised dedicated EV in compact SUV space,” the company said.
“Both these launches are expected to meaningfully boost our volumes and act as powerful catalyst for our next phase of growth. Of these two new launches, one will mark the debut of our new localized dedicated EV in the compact SUV space accelerating our transition towards electrification and strengthening our future-ready portfolio.,” Garg said.
“The other one will further expand our presence in the ICE SUV segment. Notably, both these launches are positioned in high-demand segments aimed at broadening our portfolio and deepening our presence. The upcoming EV will mark our entry into a new segment, while the ICE SUV will further reinforce our position in the mid-SUV category. When I say mid-SUV, I mean more than 4 meters,” he added.
Garg also said the two new models were not only planned for the domestic market but also would be considered for the export market in due course.
Hyundai’s Chennai plant capacity is 8,24,000 units.
The company’s management pointed out that the Chennai plant capacity came down a bit after production of Hyundai Venue model was shifted to the Pune plant.
“One of the reasons for our strong profitability all these years has been the 90-95 per cent capacity utilisation in the Chennai plant. It dropped temporarily due to the production shift. With the new models going to be produced in Chennai plant, the utilszation will be healthy,” the management added.
Hyundai has lined up a capex of Rs 7,500 crore.
About 45-50 per cent of the capex would go towards the upcoming new products and remaining towards expansion of the Pune plant and upgradation of Chennai plant, according to Hyundai’s management.
Also read: https://industrialeconomist.com/hyundai-eyes-8-10-domestic-volume-growth/