Hyundai to assemble luxury cars in India

Hyundai Motor India, the country's second-largest passenger car manufacturer, may introduce more luxury cars in India, President Ashok Jha told Business Standard at the launch of the compact car, the i10, in Pune.

Some of the models the Korea-based parent company makes might be relevant to India, Jha noted. The luxury cars would be brought to India as completely knocked down (CKD) and assembled at the Tamil Nadu plant, Jha said.

In India, the company sells luxury car Sonata, which comes as a completely built unit (CBU) from Korea. Hyundai Sonata is a 2359cc luxury sedan. "The new cars will be brought as CKDs and built in India," Jha noted. We would decide on the model soon, Jha added.

The company also makes other luxury models such as Grandeur (3342cc) and Sentinnel (3497cc) in Korea. Other global car majors such as BMW and Volkswagen are also eyeing the Indian luxury car market.

The company might also add new models to its sports utility portfolio. This would be the premium SUV Santa Fe, which is highly popular in Europe and American markets, Jha said.

Hyundai introduced SUVs Terracan and Tuscon in India. Terracan was pulled out in a short span. "Tuscon will not be phased out when Santa Fe is introduced. The idea is to expand the range of offerings and be present in all segments where there is customer demand," Jha said.

Hyundai is building another plant in Tamil Nadu to increase the capacity to 600,000 units a year. The plant would be operational in a year, Jha adding that about half the production would be exported.

BIG IS BEAUTIFUL

Currently, Hyundai sells one luxury model, Sonata, in India

The Korean chaebol thinks some of the models it makes in Korea may have many takers in India

The luxury cars will be brought to India as completely knocked down and assembled at the Tamil Nadu plant

The company may also add new models to its sports utility portfolio

Indian luxury car market is becoming bigger with BMW and Volkswagen eyeing the market