Hyundai to ramp up production by 18% in 2009

The country's second-largest car maker, Hyundai Motor India, plans to hike its production by over 18 per cent in the current year as it targets a 10 per cent jump in sales and expects a revival in the market in the second half of 2009.

It is planning to launch its sports utility vehicle (SUV) 'Santa Fe' in 2010, besides exploring possibilities to roll out a smaller car than 'Santro' in the Indian market. The company will also start producing diesel engines by 2010.

"In the first half of 2009, the domestic market was flat, but we are seeing positive signs of revival of the market and we are expecting it to pick up in the second half. Our target is to produce 5.8 lakh units in 2009," Hyundai Motor India Managing Director and CEO Heung Soo Lheem told reporters here.

The company had produced 4.9 lakh units last year out of a total installed capacity of 6 lakh units a year, he added.

"Our exports grew by over 22 per cent in the first half. We expect to maintain the same rate and are targeting to sell three lakh units in the overseas markets. We are also hoping that the domestic market will surely improve," Lheem said, adding the company is aiming to close the year with an overall jump of about 10 per cent.

Asked about launching its SUV 'Santa Fe' in the country, Lheem said the company is currently carrying out a feasibility study and would act accordingly.