South Korean automobile major Hyundai is considering a third factory in India, highlighting the growing importance accorded to the Indian market.
Hyundai Motor Group's chairman Mong-Koo Chung who recently met Indian prime minister Narendra Modi said the firm is keen on carrying forward economic cooperation with India from its plants in Chennai to other sectors, including construction and railway.
But a final call for the third factory is yet to be taken on whether it would be set up by Hyundai Motor or its sister firm Kia Motors, Reuters reported.
Chung said: "Hyundai Motor's Chennai plant is a symbol of Korea-India economic cooperation and I thank the Indian government for its support in Hyundai Motor's growth in the Indian market.
"I hope in the future Hyundai Motor Group will be able to continue its cooperation with India in other areas such as construction and railway to play a more meaningful role in Korea-India's mutual economic development."
Hyundai Motor has currently two plants operating in Chennai with a total production capacity of 650,000 units over three shifts. The automaker is in the process of enhancing unit per hour (UPH).
Hyundai Motor, which had earlier secured the second position during its first year in the Indian market, had emerged as the leader by selling 400,000 vehicles a year, the automaker said in a statement.
Besides, the company claimed that the automobile industry in India had notched up 3.2% rise in its annual sales. With sales projection estimated at 2.74 million vehicles this year, such figure is set to reflect 7.8% increase as against that of last year.
The carmaker is currently helping its business partners expand their auto component business in India.
