Hyundai to build second plant in India
South Korean automaker Hyundai Motor plans to invest $500 million in
India by 2008 in order to expand capacity.
Hyundai will increase its annual
production capacity to 400'000 units in
India by 2007. Last month, the company announced that it would build a second plant in
India.
Rising incomes and low vehicle interest rates in
India prompted General Motors, Suzuki and others to expand their capacities and widen their vehicle ranges.
India's passenger car sales rose 25% to a record 802'788 units last year, said the Society of Indian Automobile Manufacturers. Exports also rose 50% to a record 160'059 units in 2004.
India, Asia's fourth-largest economy, may match
China's current demand for cars in four years if the Indian economy continues to grow at an annual rate of 8%.