India’s largest car exporter has halted the shipments going out to the European markets from its Chennai plant, as the company has now officially shifted the production of the models for the continent to its company plant in Turkey and Czech Republic. The Korean company’s Indian arm will now turn focus on producing and shipping cars from the country into the Latin American, Middle East, Australia and the Asian markets, in addition to the domestic market.
The aforementioned development will result in around 25 per cent reduction in overseas shipments from the company’s plant in Chennai this year at 1.9 lakh units compared to 2.53 lakh units shipped last year. “Its has been about a month that we have stopped serving Europe, which will now be served by Hyundai plants in Turkey and Czech Republic.” Rakesh Srivastava, Hyundai Motor India’s senior vice president of sales and marketing said.
The company says that the aforementioned step was taken up considering the need for immediate capacity at the Chennai plant to serve the requirement of the Indian market. Hyundai Motor India’s capacity utilisation of the Chennai plant was 98.5 per cent last year. Going forward, all the European models of the i10 and the i20 will be served from the newly opened plant in Turkey and Czech Republic. Also, the latest Hyundai product, the Elite i20 that was launched in India earlier this week, will be produced at the Turkey plant for the European market.
The European continent has been one of the largest export markets for Hyundai Motor India, accounting for 40 per cent of all the shipments rolling out from the Chennai plant, which boasts of a capacity to roll out 6.8 lakh cars per annum.