The new Hyundai Motor India Ltd. (HMIL) plant will have an annual capacity of 150,000 units and will be constructed on a 74.2 million square-foot site adjacent to the current facility at Chennai.

Construction of the new plant is set to begin in April of this year and is expected to be completed by 2007. When the second plant is on-line, HMIL's annual manufacturing capacity at Chennai will be increased to a total of 400,000 units.

In addition to supplying the Indian market, output from Chennai's second plant will be shipped to Europe, Latin America and neighbouring markets, including the Middle East region.

The new plant is scheduled to build the successor to the Santro [Atos], a highly successful minicar that has been a strong seller in India. India is already Hyundai's main production centre for this model, which is exported world-wide under a variety of nameplates.

HMIL is targeting an Indian market share of 20% or more in 2007.  With the quick rise in the country's middle class and their disposable income, India has become one of the fastest growing car markets in the world.

In 2003, Indian car sales reached 650,000 units and grew to 800,000 units last year. This year, sales of 920,000 units are forecast. Based on recent growth trends, India's car market will grow to 1.15 million units by 2007, 1.45 million by 2009 and 1.62 million by 2010.

With this projected growth, the subcontinent has turned into a competitive battleground for the world's leading automakers.  GM, Toyota and other automobile manufacturers are expanding their manufacturing facilities as well.

HMIL began manufacturing in September 1998 with the Santro minicar as its first model. It quickly established a reputation among Indian new car buyers as a high quality brand offering the latest technology at an affordable price. In the wake of Santro's success, the company added the Accent, Elantra, Sonata and Getz to its lineup of Indian-built Hyundai cars.

The company made news when in November 2003 HMIL's cumulative sales reached 500,000 units, achieving a growth rate unprecedented in the Indian car industry.

HMIL's dealer network will be increased from 146 to 180 sales outlets this year and its service dealer network will expand from 408 outlets to 480.

The Santro is now India's best-selling minicar and its stable mate, the Getz, introduced in September 2004, is fast growing in popularity.

Hyundai plans second assembly plant in India