Financial Daily from THE HINDU group of publications
Friday, Mar 12, 2004

Cross Currency

Group Sites

Corporate - Outlook

Hyundai all set to ship Santro to Mexico

N. Ramakrishnan

Chennai , March 11

HYUNDAI Motor India is all set to export its best-selling car, Santro, to Mexico. In Mexico, the Santro will be badged as Dodge Atos.

Dodge as a brand belongs to DaimlerChrysler, which has a 10 per cent stake in Hyundai Motor India's parent, Hyundai Motor Company of Korea.

A small batch of cars has been shipped and a bigger consignment, of about 1,000 cars, will be shipped shortly, according to company officials.

Hyundai Motor India manufactures the Santro at its plant at Irungattukottai, about 45 km from here. It began exports of the Santro - badged as Atos Prime - to Europe in August last. After Mexico, Hyundai Motor India Ltd (HMIL) hopes to export the Santro to Panama, according to the officials.

Unlike its exports to Europe where the Santros are being sold by Hyundai, HMIL decided to export to Mexico through DaimlerChrysler because of the import policy followed in Mexico, according to industry sources. Mexico has granted sales rights on automobile imports to companies that have operations in the country.

In a response sent by e-mail to Business Line, Mr Benjamin Vital of DaimlerChrysler Mexico, said the company would sell Dodge Atos imported from India from mid-2004. It has been importing the car from Korea so far. DaimlerChrysler started selling the Atos in Mexico during 2000.

Two models of the Atos are on sale in Mexico - Atos Basic and Atos Luxury. Atos Basic costs Pesos 70,585 (about Rs 2.8 lakh) and Atos Luxury Pesos 86,195 (Rs 3.4 lakh), according to information available on DamilerChrysler's Web site.

In response to questions, Mr Vital said the sub-compact segment where the Atos is positioned is about 5,00,000 units a year, making up over 60 per cent of the total Mexican automobile industry. DaimlerChrysler hopes to sell about 17,000 units of the Atos a year.

He said that the Atos faces competition from a number of cars, including Matiz, Palio, Corsa and Chevrolet, all of which are sold by General Motors; Fiesta and Ka from Ford; Polo, Golf, Lupo and Derby from Volkswagen; Ibiza and Cordoba from Seat, a Volkswagen subsidiary; Peugeot 206; Yaris from Toyota; and some models from Nissan.

Exporting to Mexico, considered a tough automobile market, will be another landmark for HMIL. The company hopes to export a total of 65,000 to 70,000 cars in 2004 against 30,000 last year. By 2006, HMIL hopes to export 80,000 cars, with more than 50 per cent going to Europe. Hyundai Motor India will expand capacity to 250,000 units a year by August 2004. Ultimately, the company plans to export a third of its total production, company officials had told journalists when it flagged off exports to Europe.

More Stories on : Outlook | Exports & Imports | Cars

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
A.L. Mudaliar steps down as Bata India chief

Mitsubishi working on new car for India
BHEL bags ONGC equipment contract
GSPC issues LI to Saipem for offshore oil rig
BG India to invest $140 m in Panna
Century delists from DSE
TN chamber obtains interim stay on 5 pc electricity tax
CPCL demo plant to produce water from sewage
ICRA assigns highest safety rating to GAIL bonds
Emirates launches eurobond issue
NIIT to spin off software biz — Targets US, Europe to grow education division
ABB board okays sale of control valve biz
ACC pact for stake buy
DBS opens office in Hyderabad, Kolkata
Yuksom Breweries plans to go beyond N-E
Rolls Royce in talks with Reliance for gas kit supply
Petronet proposes terminal at Mangalore — Hopes to team up with ONGC
Netafim to expand, set up plant in AP
Matrix Labs gets US nod for second unit
Dodsal bags order for petro products supply in Afghanistan
Proalgen Biotech to come out with IPO
Varun Shipping plans rights, global offering
Proposed share sale to Bajaj Auto — Maharashtra Scooters shareholders seek fair returns
Nicholas Piramal profit `to take Rs 50 lakh hit'
LG Elec looks at Rs 7,000-cr turnover
Hyundai all set to ship Santro to Mexico
Steelage hopes to double turnover

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line