Hyundai’s Chennai factory made more cars than China unit in 2019

India’s production unit is still behind the automaker’s South Korea factory

Hyundai Motor India’s (HMIL’S) factory near Chennai has emerged the second-largest production base for the auto major, after South Korea, overtaking the company’s China unit in 2019.

Hyundai Motor Company (HMC) has eight factories across the globe, of which one is under construction in Indonesia.

In a recent presentation to investors, HMC shows that in 2019, the Indian factory produced 682,000 units, with an installed capacity of 696,000 units.

China (Beijing Hyundai Motor Company) produced 658,000 units last year, with an installed capacity of 1.35 million units. While capacity utilisation in India was around 97 per cent, in China it was only half.

HMIL’S factory at Irungattukottai produced the Creta, Venue, Nios, Aura, i20, among others, while the Chinese factory produced the Elantra, Mistra, Lafesta, ix25, ix35, and others.

HMC forecasts this year ’s global auto industry demand to decline 20 per cent. However, it will not officially revise the this year ’s business plan, given the uncertainties during the second half, noted the presentation.

For India, HMIL projected wholesales of 525,000 units in 2020, compared to 510,000 units in 2019 — an increase of 2.9 per cent. However, for China it projected 12.3 per cent growth to 730,000 units, from 650,000 units in 2019. HMIL’S domestic and export volumes were at 691,460 units (510,260 domestic and 181,200 export) in sales in 2019.

When it comes to market share, after South Korea, Hyundai enjoys a significant share of 17.3 per cent in 2019, while in China, Hyundai got only 2.4 per cent. India accounted for 11.5 per cent of HMC’S total sales.

With refreshed line-ups, HMIL is planning to restore the sales momentum with volume models. During the fourth quarter of 2019, the i10 Nios and Aura followed the Creta during the first quarter of 2020. Before December, the company plans to launch the new Elite i20, followed by the new Elantra in 2021.

HMIL’S net sales rose to ~43,258 crore in 2018-19 (FY19), from ~39,333 crore a year ago. The company ’s profit rose to ~2,582 crore, from ~2,124 crore. The profit before tax increased to ~3,968 crore, from ~3,241 crore, according to the Business Standard Research data. The total vehicle sales during the period moved from 677,000 units in 2016-17 to 707,000 in FY19. Hyundai has been the front runner, offering Indian customers the best-in-class features and technology. It has always led the Indian market from the front. Undoubtedly it offers tremendous value to its customers and in a way its profit per car is low, compared to peers.