Hyundai expects 16% sales rise this fiscal

As it works towards expanding capacity in India, Hyundai Motor India today said it expected sales to grow around 16% this fiscal to 2,60,000
units.

"We have faced capacity constraints and are taking to address this issue with the coming of our new plant by 2007. We feel that sales this year would be in the range of 2.6 lakh units," B V R Subbu, president of Hyundai Motor India said today.

Sales for the company grew 30% in the just-ended fiscal at 2,24,243 units and Subbu said the turnover for the year ended march 31, 2005, is expected at Rs 7,500 crore (inclusive of taxes).

The company is investing close of $500 million for its new 1.5 lakh capacity plant which is expected to be operational by mid-2007.

Subbu said sales could have been more in 2004-05, but for disruptions in production between April-June, 2004 and problems in February this year due to fire at its plant.

The Indian subsidiary, the biggest overseas production facility for the South Korean automaker, is a major exporter of small car 'Santro', mostly to European countries.

Subbu said exports last fiscal were up 95% to 82,093 units as against about 45,000 units exported in 2003-04.

On another issue, Subbu defended the company's new ad campaign which said that the Santro was the largest selling car made in India. "At 1,78,000 units, Santro is the single-largest produced and sold car model in the country. The figure includes both domestic sales and exports. So if our advertisements claim something, I feel there should be no confusion," Subbu said.