Hyundai Motor Company is planning to increase the sourcing of car components from India for its global operations. Currently, the car manufacturer is sourcing only minimal quantity of components from India for its global needs.
According to Hyundai Motor Company Senior Vice-President (Asia & Pacific Division) Young-Kil Chun, “India can be a hub for the components industry. Hyundai will increase (sourcing) from India. We do have our vendors based in India who have helped us localize, but if India is to become a global outsourcing hub then a very important issue needs to be addressed first, which is the need to maintain consistent quality.”
He further added that “In India, we are currently working two nine - plus nine-hour shifts. Earlier, we were working three eight-hour shifts every day. So, we have cut down on the production and once the situation improves we will get back to the earlier three eight-hour shifts. We may recover our production sometime after 2010.”
Mr. Chun also conveyed that the company has no plans to compete with the world’s cheapest car Nano. But in a span of two to three years will launch a small car that will be positioned below the Santro.
The company is experiencing a tough time in domestic as well as global markets. Hyundai at present has reduced its production capacity. However, it has administered a good growth in U.S., India, and China.