Hyundai India to Shift i20 Export Production to Europe

Hyundai Motor India will shift the production of its i20 model for exports from India to Europe some time next year, a top official said Saturday. The company has been rolling out this model, for both domestic and overseas markets, from its Irungattukottai plant near here.

Hyundai has operations in the Czech Republic, Turkey and Slovakia, and the car could be manufactured in plants in any of these countries, company managing director H.S. Lheem told reporters at the plant. The shift will not have any impact on the Indian operations as the domestic demand for the model has far exceeded the companys original expectations of 400 units per month, he added. Citing the absence of free trade agreement (FTA) between India and the European Union (EU), Lheem said exports to that region were being affected due to the 6.5 percent import duty levied by the EU.

He wanted the Indian government to subsidise the cost or take action to sign an FTA. Referring to the workers’ strike at the factory, he said the situation would normalise by Monday. Over 1,000 employees at two of the Hyundai plants in Irungattukottai have been on strike since Thursday against a wage agreement signed between the management and the Workers’ Committee. The striking workers say the committee, set up by the management itself, does not represent the employees.

Posted in: Europe,Hyundai,India