Hyundai reworks strategies to cope with global slowdown

14 November 2008

Mumbai: Hyundai Motor India is planning to expand its network in India and enter newer markets in Southeast Asia to make up for the losses it expects to incur from falling exports to Europe. So far Hyundai Motors has been untouched by the global slowdown but Hyundai Motor India officials said this state of affairs was not likely to continue.

The company which is the largest exporter of cars in the country is anticipating a 25 per cent fall in exports, due to the global slump in auto demand.

H S Lheem, managing director, Hyundai Motor India said, ''Exports may fall by 25 per cent next year if the demand in Europe goes down next year.'' He however, said that in such as scenario the company would begin exporting to new markets like Vietnam and South East Asia.

Hyundai Motor India currently exports cars to 95 countries and expects to add 5 new export destinations by the end of the year. The firm is targeting to export 25, 00,000 cars this year.
The company has recently shipped the i20 to Europe. The car will be on offer there by Christmas and will be launched in India around January 2009.

However, some European countries have postponed their orders but the carmaker has enough orders to keep it busy for the next three to four months. Since most of the orders are placed four months in advance, the effect of the current economic crisis in the west is yet to be felt.

The company's plant in Chennai has begun production and its current production capacity is 6 lakh cars annually. In India the company is focusing on increasing its dealerships. The number of dealers in India will go up from 218 to 260 by the year-end with Hyundai entering Tier III towns and acquiring multiple dealerships in major cities.