New Delhi, Aug 04: India's second largest car maker Hyundai Motor India Ltd on Monday drove in its maiden imported car -- the sports utility vehicle Terracan -- with a Rs 18.49 lakh price tag. The firm has also discontinued production of its volume player Santro and replaced the model with the upgraded Santro Xing. The Santro, company president, BVR Subbu said, will also be replaced in the export market with the Xing. "The last of Santro was produced and exported in June this year. We are not getting any more orders for the Santro and have discontinued that model."
Hyundai, Subbu added, is constrained by production capacity at its plant in Chennai to meet the growing demand for its vehicles. "It has led to huge waiting lists on our models." The firm is now investing around Rs 1,000 crore to upgrade its plant and augment capacity to meet the increased demand. The expansion would be funded primarily through internal accruals.
The firm is also staring at a potential threat from the over a month-long strike at its South Korean parent firm. "If the strike prolongs till mid-September, we may face some problems as we import certain parts for Sonata, Accent Viva and Accent CRDi diesel cars from Korea. But we have enough stock to last us till September," he added.
Meanwhile, unveiling the Terracan, Subbu said the vehicle would be powered by a 2.9 litre CRDi diesel engine that delivers 150ps power. "It also boasts of advanced off-road capability with a part-time 4-wheel drive." Hyundai expects to sell around 700 units of Terracan a year.
Bureau Report