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Hyundai Plans to Set Up Production Base for i20 in Europe

By Motortrend India Staff   |   03 May,2009

The Korean car manufacturer is planning to set up another production base outside India for its premium hatchback i20. With the growing demand for the model in Europe, the company feels that it will be economical to have a production unit closer to the market. Though the company has a few production bases in Europe, the exact location for the new plant is yet to be decided.

The first European consignment of the i20 called as ‘Made in India’ comprised 2,820 units of the car. According to a Hyundai official, around 17,000 units were exported to Europe in the first quarter of 2009.

Initially, the company had announced that the entire production of the i20 for European market would be met through the production unit at the Sriperumpudur facility in Chennai. But the decision had to be changed due to some of the factors like fluctuation of rupee value, poor power availability, inadequate export incentive, and labour problem which make car export a costly affair. HMIL sources also confirmed that the production of i20 would continue in the Sriperumpudur facility for the domestic requirement.

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