HMIL, which took the market by storm with the Santro- hopes to break-even in the next financial year. "We are confident of making profits next year and local investors would like to invest in the company," Kim added. The conglomerate has invested $ 642 million in the Indian venture and does not propose to put in fresh funds till the local arm starts making profits.

Officials are, however, tightlipped on the nature of disinvestment and state they are not averse to either placing shares with the FIs or tapping the small investors with a public offering. "The equity dilution will only be to the extent that we are comfortable with," Kim said.

On new launches, he said that his company was exploring various options. "We are yet to decide whether to go for a passenger car or switch focus to MUVs or SUVs. Our parent company along with Kia Motors has an exhaustive range of models and we will decide based on market demand."

The company is hopeful of repeating its Santro success with the Accent, priced-between Rs 5.35 lakh and Rs 5.85 lakh (ex-showroon prices Delhi). The Accent will cost Mumbaites between Rs 5.83 lakh to Rs 6.37 lakh. It is also exploring the option of exporting both the models to the neighbouring countries like Sri Lanka, Bangladesh and Nepal. "We have not been able to keep pace with local demand and so our export plans took a backseat. We hope to start exporting completely built-up cars soon," Kim said.

INSIGHT

A welcome move

The decision of the Hyundai management to liquidate a part of its holding in favour of domestic shareholders for any future capital raising exercise will be welcome as far as domestic shareholders are concerned. This will be one opportunity for Indian shareholders to participate in the booming automobile market in India. Incidently, Daewoo Motors had also indicated that it would be open to dilutions in future.

-- Aaron Chaze