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Hyundai plans local manufacturing of i10 in Europe

With an aim to give a push to sale Hyundai i10 in the European market, Hyundai is planning to start its manufacturing in Europe. At present, Hyundai i10 is being exported from India to the European market which is one of the reasons, Hyundai was not able to achieve the success it estimated in the European market. The media reports suggest that as far as the sale of Hyundai cars are concerned, the best selling car in Europe is i30. The recent launch of Skoda Citigo in UK has also dampened i10 sales.

Following Hyundai i30 is Hyundai i20 and Hyundai ix35 but i10 is at the fourth slot in terms of sale of cars in Europe. That has surprised the carmaker as the premium hatchbacks have got the success in terms of volume than the entry level model. After analyzing the situation, the company found that i10 is not doing well as expected because it is not being produced locally in Europe. Now, Hyundai has decided to join hands with Kibar Holding in Turkey to manufacture the car for Europe. It is expected that the manufacturing of i10 in Turkey would be started by the end of 2013.

The cars will be produced at Izmit plant, which will increase the capacity to 2,00,000 units. Also, it will create around 750 new jobs and it will also create 1,500 jobs at the suppliers. Volkswagen has been leading in Europe with Volkswagen Up and its subsidiary’s Citigo car and Hyundai is planning to give Volkswagen a tough fight in Europe by taking the step of producing i10 in Turkey. It would be seen that what the Hyundai would do with the vacant capacity in Chennai after the production of i10 for European market would shift to Turkey. It is expected that Hyundai may use the increased production capacity for manufacturing MPV. At present, not only Hyundai but also Nissan and Maruti are exporting their small cars to European markets.