Chennai, Feb 2: Hyundai Motor Co, South Korea's top automaker, on Saturday opened a second plant in India to take on growing competition, cementing the country's position as a global hub for small cars. The facility in Sriperumbudur, near Chennai, will double capacity to 600,000 units, second only to leader Maruti Suzuki India Ltd's planned expansion to 1 million units by 2010/11.

The plant, adjacent to the existing facility, will largely be dedicated to making the new i10 for local and export markets, Chairman and Chief Executive Chung Mong-Koo said. "Hyundai Motor India will play its role of a global manufacturing hub for all of Hyundai's small car models," he said in a statement. Hyundai, which along with affiliate Kia Motors, is the world's sixth-largest automaker, is banking on new models such as the premium Genesis, and new factories in markets such as China and India, to boost sales by 20 percent this year.

Hyundai Motor India sold 327,160 vehicles in 2007, up 9 percent from the previous year. Sales of models such as the Santro and Getz hatchbacks rose 8 percent in the domestic market, while exports climbed 12 percent.

Hyundai, which is in talks to launch commercial vehicles in India within a year, will face a bigger fight from No. 3 car maker Tata Motors Ltd, which will roll out the ultra cheap Nano car, priced at just over $2,500, later this year.Hyundai Motor India aims to make 530,000 vehicles in 2008, is expanding its dealer network to 300 from 230, and will export to 90 markets, up from 73 now.

Nano not to hit Hyundai sales

Sriperumbudur (Tamil Nadu): Riding on the success of 'i10', Hyundai Motors India Ltd (HMIL), a wholly-owned subsidiary of South Korea-based Hyundai Motors, on Saturday said the Tata's Rs one lakh car Nano is unlikely to affect its business. ''Nano may not affect our business, as the customers are willing to pay more to buy mini-segment cars,'' company Senior Vice President (Marketing and Sales) Arvind Saxena said after the inauguration of the firm's second plant. To cater the demand of the domestic as well as the export markets, country's second largest car maker HMIL second plant began operation on Saturday with the company already investing Rs 4,000 crore and an additional production capacity of three lakh units. The plant was inaugurated by Tamil Nadu Chief Minister M Karunanidhi which was attended by Communications and Information Technology Minister A Raja along with several other dignitaries. ''Presently the company is not looking at Nano,'' Mr Saxena said adding that 'if the firm looks at it, it will be from global point of view that the compact low-cost car should meet all the necessary global standards.' He further added that out of more than 25,000 units of i10 which the firm sold since the time of its launch, one third of it were bought by the customers who were purchasing for the first time. 'The customers are inclined towards more space, more comfort in their cars rather than spending less,'' he said. At present, the wholly-owned subsdiary of South Korea-based Hyundai Motors, HMIL markets 34 variants of passenger cars across various segments.