Hyundai chief to meet PM

Hyundai Motor India Limited (HMIL) head H S Lheem will meet Prime Minister Manmohan Singh tomorrow to discuss issues concerning HMIL, which is the single largest Korean investor in India.

Lheem is expected to apprise the prime minister on his concern over frequent changes in automobile policy and also seek special concessions on export of cars from India.

"Besides raising the topical issue of any possible change in the small car definition in the forthcoming budget, we will also be asking for specialised port facility for the automobile industry and special auto clusters to boost exports from India. We plan to export 300,000 vehicles from India in next two years and will be demanding more incentives, in-line with the government's aim to make India hub for small car manufacturing," a Hyundai spokesman said.

Lheem, heading the second largest passenger car company in India, which is also the single largest car exporter from India has expressed apprehensions over the possible changes in the small car definition by the government, which could jeopardise its entire strategic plans for India.

According to the company sources, Hyundai has been pursuing plans to build a number of cars within the small car definition of India government "� four-meter length with petrol engine of 1200 cc or diesel engine of 1500 cc "� which invite lower excise duty of 16 per cent, than other cars, which are charged an excise duty of 24 per cent. Hyundai lags behind the market leader, Maruti Suzuki, which sells every second car in India.

With this in mind, HMIL is planning to invest an additional $1.4 billion in India over the next two years to double its annual production capacity to 600,000 units by late 2008. Hyundai is eyeing China and India as its two largest growth markets in Asia besides Korea.