New Delhi . The country's second largest car company Hyundai Motor India (HMI) plans to make India a production hub to meet the demand for its cars in emerging markets.
Ansoo Kim, managing director of HMI, said in a conference call that the company will expand production to meet growing demand in the domestic market as well as export markets in Africa, the Middle East, Latin America and South Asia.
Kim further said that along with domestic, the volume of export market is also witnessing an increase. We have a good product lineup for emerging markets.
According to Kim, profits will also increase due to good product mix of domestic and export markets. Also, it will act as a natural hedge in case of market fluctuations.
Hyundai Motor India has recently expanded its production capacity by acquiring a new plant in Pune to meet the growing demand. With this, Hyundai's total manufacturing capacity in India has reached 1.1 million units.
Kim said that we are developing our own electric vehicle (EV) ecosystem in India. We are planning to launch four EV models including Creta EV. And we are also localizing EV supply chains like battery packs, driver trains and battery shells.
Hyundai Motor India issued a $3.3 billion IPO in the stock market last month, which was the largest IPO in the history of the country. The issue was subscribed more than 2.37 times.
Bids were received for 23.63 crore shares against 9.97 crore shares in this offer. The qualified institutional buyers (QIB) category was subscribed 6.97 times. Noninstitutional investors (NII) category was subscribed 0.60 times. The Retail Individual Investors (RII) category was subscribed 0.50 times.
Currently, Hyundai Motor India shares have fallen more than 10 percent from their IPO price.
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Image Credit: KhasKhabar.