Hyundai will shift part of i20 production from Chennai in 2010

The decision which was taken during the labour strike at Hyundai Motor India's plant near Chennai in April and May, is still alive and this is to come true may be in 2010. At that time, the company decided to shift the production of the car out of India. Now, the HMIL has come up with new place to produce i20. Nevertheless, the reason for the shifting is said to be the logistics costs and import duty that add 10-15 per cent to the price of cars exported from India. It may be Turkey, the Czech Republic or Slovakia. In spite of the decision, India will be the main production hub for the car. All the expected places, where the production will start, is more closer to its large overseas markets such as Germany, France, Italy and the UK. "We are looking at competitive pricing for the i20 and will shift some portion of its production next year. While India will remain as the main production hub for the car, the European orders will be met from the new production facility,” HMIL CEO & MD HS Lheem said.