Hyundai Motor India Ltd. (HMIL), which currently has a production capacity of 6.8 lakh cars in the Indian market, said that the company had flexibility to expand its capacity to 7 lakh units. The car-maker, however, has tentatively ruled out immediate plans to set up another plant as the current market conditions are not favourable, according to company officials.
While a high volume of exports from India has helped the Korean firm to shield itself from the impact of slowdown in the domestic market , with the ratio of domestic sales to exports roughly being 60:40, the company remains dedicated to the Indian market.
According to officials, the company is committed first to the domestic market, which is its focus.The company, which rolled out its 5 millionth car from its plant near here on Thursday, has so far invested $2.7 billion in the Indian market.
“The 5 million car roll-out is an important milestone, and a symbol of our long-term commitment to the Indian market. As we reach this significant landmark, we will continue to focus our effects in the domestic industry through investments ,” said B.S Seo, Managing Director and Chief Executive Officer, while addressing reporters at the company’s plant near here.