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The Korea Herald
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THE INVESTOR
March 29, 2024

Automobiles

Hyundai, Kia target 1m vehicles in India by 2020

  • PUBLISHED :May 15, 2017 - 13:29
  • UPDATED :May 15, 2017 - 13:29
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[THE INVESTOR] Hyundai Motor and Kia Motors, said on May 15 they will increase their combined output capacity in India to over 1 million units by 2020.

India is expected to grow into the world’s third-largest automobile market after China and the United States by 2020 as demand for cars grows by more than 7 percent annually, a Hyundai spokesman said.

He said demand for environment-friendly vehicles is on the rise due to worsening air pollution there.

Hyundai Motor currently operates two plants in Chennai, the capital of the Indian state of Tamil Nadu, with a combined capacity of 650,000 units. Kia has no production facility there and does not export any vehicle to India due to heavy tariffs.

Hyundai sold 500,539 vehicles in India last year, up 5.2 percent from 476,001 units a year earlier. It was the No. 2 player in terms of market share at 17 percent, following Maruti Suzuki India with a share of 47.3 percent, according to the company.

Its sister company Kia plans to invest US$1.1 billion to build a 300,000-unit-a-year plant in the Indian state of Andhra Pradesh by 2019. Kia made the investment decision as it seeks to take advantage of rapidly growing local vehicle demand on the subcontinent and low interest rate trends.

By Alex Lee and newswires (alexlee@heraldcorp.com)

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