Hyundai Motor India (HMIL) is going ahead with its plan to hike prices by 2.5% to 3% on certain models effective February 13. This follows the hike in the cost of raw materials and there is a lower capacity utilization following the economic slowdown and hence passed on to the customers.
Speaking to mediapersons, HS Lheem, Hyundai India MD, said that the the company was no exception to falling prey to the tightening market conditions due to the global slowdown. He was here to open regional office, with the company having about 13 dealers in Andhra Pradesh with a marketshare of 24%.
“We have changed our shifts operations at our two manufacturing plants in Chennai from three shifts to two per day starting January 2009. With the markets expected to stabilise soon, we plan to commence three shifts from September,” Lheem said adding that though the company has ambitious plans, a clearer picture of the global economy is yet to be established.
Hyundai felt the heat of the global economic slowdown on the sales front and sold 490,000 units last year. “This year, the market situation is almost uncertain and we will be getting a clear picture on our sales only after completing the first quarter,” he said, adding that they should be exporting 280,000 units this year.
Meanwhile, the company is investing $28 million in constructing a new building for its research and development centre in Hyderabad, which currently is leased housing about 400 staff. “The new R&D facility, with an 800-seating capacity, will support computer-aided design and analysis to Hyundai’s future models. We expect to occupy the new centre by this May,” Lheem said. The R&D centre would also be supporting its centre in Korea on all its future models, he added.
Further, he added that there is also a plan to develop a smaller car than the Santro model but did not divulge further details but emphasized that two new models would be introduced every year.