It is reported that South Korean car maker Hyundai will invest around INR 800 crore to develop a small car for the Indian market that is likely to be launched in the next two years.

The report said that Hyundai subsidiary Hyundai Motor India Ltd will manufacture the car which will be smaller than the Santro at its plant. Mr Han Woo Park the newly appointed Managing Director and CEO of Hyundai Motor India Ltd said that “We are developing a small car and approximately INR 800 crore will be invested at the Korean plant for development.”

He added that “It will be smaller than the Santro and the price will also be lesser. It will take at least 24 months from now to launch the car in India. Right now, it is in the design stage. Initially it will be targeted at India but gradually it will also be exported.”

HMIL, which sells popular compact cars like Santro, i10, i20, has made India a small car hub for the Korean firm and has been exporting the cars to overseas markets. In October, the company sold a total of 51,736 units an 11% growth compared with same month last year. Its exports, however, dipped by 11.9 per cent to 23,435 units during the month.

(Sourced from PTI)