Matiz has proved to be popular in Europe and there is a shortage as the parent plant in Korea is unable to cope with the increased demand, the sources said, adding the Indian plant will step in and make up the shortfall.

Samples have already been despatched for getting different approvals ranging from safety to environment specifications. Matiz, which was introduced in India three months ago, has a sales volume of 1000 to 1500 per month. Fifty per cent of the total production has been earmarked for exports. Sources said that the engine and gear box from its plant were already being exported to the parent company in Korea. So far, components worth US$ 35 million hadbeen exported to Korea, they said, adding these components were being used in cars exported to the United States.