Hyundai India eyes 23% growth

While the automobile industry as a whole has not fared well with the growth rate remaining at about 7 per cent, Hyundai India targets to achieve 23 per cent growth this year as against the 19 per cent achieved last calendar year.

The rise in fuel prices and interest rates in the last few months seem to have thrown the spanner into the overall growth.

"We expect the industry to do well in the coming year with the growth rate touching 12 to 15 per cent," said V P Bhasin, senior vice-president (sales), Hyundai Motor India Limited (HMIL).

He was speaking at the function organised here on Monday to present a red Getz to tennis ace Sania Mirza, Hyundai's new brand ambassador.

"Sania is a perfect match for Getz," said Bhasin stating that the consumer was not just looking at the automobile as a means of transport but also for a thrilling riding experience. Sania was roped in as the brand ambassador for Hyundai's Getz last month. Getz with its trendy look was aimed at the youth, Bhasin said.

With a current market share of 17.4 per cent, Hyundai, the second largest car manufacturer in India, is also targeting to up the market share by 1.6 per cent to 19 per cent this calendar year.

"The festival season of October is the best for retail sales," Bhasin said. The company plans to achieve combined sales of about 2,50,000 units as against the 2,15,630 units recorded last year.

Hyundai has already announced plans for capacity expansion by 2007. A new plant will be built on a 2.1-million square metre adjacent to the existing facility in Chennai at an investment of $450-500 million in the coming months.

The plant will produce 1,50,000 units per annum raising HMIL's total production capacity to 4,00,000 by 2007. Apart from expansion of production capacity, HMIL plans to expand its dealer network from 146 to 180 this year and the service network to over 1,000.