Hyundai unveils i10 Grand; may make India manufacturing hub

Korean auto major Hyundai is aiming to develop cars from scratch in India, which is its second biggest global market after China, in its bid to strengthen its position in the country – but not in the immediate future.

Unveiling the new i10 Grand which will be launched next month, the company said it is hoping to cater to markets similar to India with such products, which will be designed and developed here.

The price of the Grand will be slotted between the i10 and the i20.

"Yes, the aim is to have a car fully developed here in India. It won't happen in the next three to four years. It can happen after five years or more," Hyundai Motor India Ltd (HMIL) chief coordinator C H Han said.

The new Grand i10 has been known by its code name till now – 'BA' for the Indian market and 'IA' for global markets. The new model will replace the first-generation i10 in a few markets and will be sold alongside the current model in at least 20 countries including India, according to Hyundai Motor India officials.

The Grand i10 was designed at Hyundai's centre in Germany. But early in its development, the process was split into two parts – one for the international markets and one for the Indian market.

With the i10 being a key product for Hyundai India, the company wanted to make sure that specific changes were made to suit local tastes and preferences.

As a result, Hyundai officials say that the Indian arm's R&D centres in Chennai and Hyderabad worked closely with Hyundai Motor Co's Namyang R&D centre to develop the BA with changes that would suit the needs of buyers here. Both the BA and the IA have been built on a completely new platform, which is currently not shared by any other car from Hyundai.

Elaborating on the reasons for the need to be able to develop cars in India, Han said, "At present, HMIL engineers are only playing a supporting role in HMC's (Hyundai Motor Co) global development. But for HMIL not only to strengthen position in India but also to able to cater to similar markets, it is important for it to be able to develop cars on its own."

Han, however, said such a programme is in the long term as the current capability and strength of the company's research and development centre at Hyderabad is still much lower compared to the parent's centre in Korea.