The Hindu Business Line : Hyundai raises i20 production

New Delhi, Feb. 2 Hyundai Motor India Ltd is increasing its production gradually to meet the demand for its recently launched premium compact car, i20.

The company has begun working an extra hour or two daily to produce more cars.

“We are working two shifts and it may not be possible for us to add a complete shift immediately. But since last few days we have increased our production by an hour or two. This helps us to make some more cars,” Hyundai Motor’s Senior Vice-President, Mr Arvind Saxena, told Business Line at the sidelines of a media interaction on the company tying with Syndicate Bank to finance its cars.

Recalling workforce

In response to the i20 demand, Hyundai had recently stated that it was recalling a certain number of its performance-oriented trained workforce who had been discontinued in December owing to the economic slowdown.

Hyundai, which expected to sell 2,000 units of its i20 on an average on a monthly basis, received an order of 2,500 units last month. Of this, the company delivered 1,700 and the remaining will be handed over to customers this month.

Mr Saxena said that since interest rates were falling, showroom enquiries had increased. He, however, said that sales were expected to remain slightly negative or flat in the present quarter.

Hyundai on Monday entered into an agreement with Syndicate Bank under which the latter will offer a 0.5 percentage point lower interest rate and a 50 per cent concession on processing fees.

The Syndicate Bank Chairman and Managing Director, Mr George Joseph, said the two partners will leverage each other’s extensive network and cross sell Hyundai’s vehicles and the bank’s car loan schemes. The bank will also finance second-hand cars, the demand for which is growing.

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