HMIL rethinks i20 export pro duction

Hyundai Motor India (HMIL) is said to be exploring the prospect of shifting the export production of its premium i20 hatchback from Chennai to Europe. This comes on the back of a recent workers’ strike at its Sriperumbudur manufacturing plant. The carmaker says it will take a decision on these lines soon.

According to Rajiv Mitra, HMIL spokesperson, “We are still considering this option and will soon arrive at a decision. If this move does come true, it will take another two quarters for the production to shift from Chennai to Europe.”

Meanwhile, the export consignment for the month of June has already been despatched. It will take another month before HMIL can finalise its stand on this issue. The decision will depend on the denial of export incentives by the Indian government and also the lack of a port infrastructure to support surging exports. The carmaker though plans to continue using the facility to expand the domestic market for the model.

Monthly i20 production is around 7,000 cars, of which 5,000 are exported. In view of the good response, HMIL had planned to ramp up production. There were plans to produce about 120,000 i20s in 2009-10 with around 70,000-80,000 to be exported, mostly to Europe. But the recent labour unrest, which disrupted production, has threatened to derail plans.

HMIL is now expecting the government to announce special incentives for making the country an export hub.