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Mr H.S. Lheem

M. Ramesh
T. Murrali

Chennai, Aug. 28 Hyundai Motor India Ltd, the country’s largest exporter of passenger cars, now plans to export vehicle kits in ‘completely knocked down’ condition.

To do this, Hyundai India is investing $50 million (Rs 200 crore) to create a new press shop at Sriperumbudur, the company’s Managing Director, Mr H.S. Lheem, told Business Line today.

In 2007, Hyundai exported 1.27 lakh cars. Mr Lheem said that exports in the form of kits could start from July next year, with a volume of about 30,000 kits initially.

Alongside, Hyundai will also expand its engine-making capacity by one lakh engines. At present, the company can produce six lakh engines. Mr Lheem said that this would not call for any major investment.

Hyundai has targeted production and sales of 5.3 lakh vehicles in the current year and six lakh in the next. Therefore, next year, the company would need all the engines that it produces, leaving little room for exports.

But there is a demand for Hyundai engines made here, mainly from Hyundai’s sister company, Kia Motors, Korea. In the current year, Hyundai plans to export 25,000 engines to Korea which would increase to 70,000 next year.

Answering a question, Mr Lheem said that the domestic market was sluggish, but the company would still meet the sales target of 5.3 lakh vehicles, because of buoyant exports. In fact, the company will go on a third shift in its second unit from October 1. The first unit is already working three shifts.

Mr Lheem said that Hyundai would launch the LPG version of Santro in September and that of Accent in October. CNG-driven Santros and Accents are already in the market.

HMIL is currently sourcing CNG and LPG kits from two companies in Korea, CEV and Motonic. The entire taxi segment in Korea is powered by LPG supplied by the two vendors, he said.

As these kit manufacturers have proven technologies, HMIL asked them to set up manufacturing facilities in Chennai, he said. Initially the company would introduce about 2,000 a month, he said. On an average the company has been selling 800 CNG variants of Santro and Accent, he said.

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