Hyundai Motors India is to ship CKD packs to Turkey where three-door i20 models for Europe will be assembled, reducing import duties so the car is cheaper and more competitive.
The i20 has been successful in Europe and HMIL currently exports both three- and five-door models to Europe.
“As of now, i20 cars are manufactured in our Chennai plant and going forward we will move part of i20 production to Turkey to meet the growing demand for this car in Europe and other countries. We’re moving only the three-door production, while the five-door will continue from here. We will send them out as completely knocked down kits (CKDs) and initially a batch of 50,000 units would be shipped out. We foresee that the export demand for i20 in 2010 will shoot up and then we cannot meet the increasing demand just from India alone,’ a Hyundai spokesman told Car Trade India for a report distributed by the Hindustan Times.
Hyundai also said it would continue to manufacture the car only in India but would export CKD units to save on import duties. Hyundai faced severe labour problems in Chennai last year and subsequently said it would shift some of its manufacturing capacity to Europe.