Hyundai to hike capacity of Chennai plant to 6 lakh

South Korea's largest automaker, Hyundai Motor Co, has announced the a 50-per cent expansion of the production capacity at its Chennai plant, which manufactures the popular 1.1-litre Santro.

With the proposed expansion, due to be completed in October 2007, Hyundai will be able to make up to 600,000 cars annually at Chennai.

Hyundai estimates the demand for compact passenger vehicles in India to grow by 60 per cent to 960,000 units by 2010 of which the company has targeted a 25-per cent market share — up from 18 per cent in 2005. Accordingly, it has earmarked investments of $500 million by 2008. This year it has a sales target of 280,000.

The company is expanding and building new factories in North America, Europe and China to emerge among the world''s five largest automobile manufacturers.