Hyundai expands at brisk pace in Europe
Hyundai is to invest Rs 7,700 crore (1.3 billion euros) in a new European production site at Nosovice in the Czech Republic. The facility underlines the company’s commitment to strengthen its position as a leading brand in Europe and increase market share in the UK.
A new subsidiary, Hyundai Motor Manufacturing Czech, will run the site, construction of which will start before the end of the year, with production of the company’s first European-built cars scheduled to start in October 2008.
The factory’s initial annual output will be 200,000 passenger cars and sports utility vehicles (SUV) plus 600,000 transmission gear boxes. From 2011, the production volume will be increased to 300,000 units annually, including the production of multi-purpose vehicles.
Following Hyundai’s move into the Czech Republic, various suppliers have also announced investments in the region, which could total Rs 1,480 crore. Tony Whitehorn, MD, Hyundai Motor UK said, “This new facility is key to Hyundai’s development in the UK. Our market share in the UK continues to increase, and this long term investment in Europe will strengthen that trend.”