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Friday, Sep 17, 2004

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Thai FTA will encourage auto dumping: Hyundai

Our Bureau

Kochi , Sept. 16

HYUNDAI Motor India on Wednesday said the free trade agreement (FTA) between India and Thailand would discourage manufacturing in India and pave the way for dumping of automobiles into the country.

"The FTA will help create employment in Thailand, not in India," said the Hyundai Motor India President, Mr B.V.R. Subbu, here at a press conference.

Mr Subbu said companies such as Toyota and Honda, who have facilities in Thailand, will now dump automobiles into India rather than increasing their manufacturing activities in the country.

As compared to this, Hyundai has set up a full-fledged manufacturing unit in India, investing thousands of crore of rupees, he pointed out.

Asked about the proposed initial public offer of the company, he said the plan has now been put in the backburner as the company does not need to raise funds from the capital market.

"We have sufficient internal resources to invest in our operations," he said.

Mr Subbu said Hyundai was not for any price cuts of its products to compete with rivals, who have resorted to slashing of prices.

He said Hyundai India would sell 2.20 lakh vehicles in the current fiscal, which includes exports of 70,000 units. The company also plans to have 1,000 service stations/points by 2005.

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