Hyundai Motor India, the largest exporter of cars in India is making some smart moves.
The company has chosen to move production of i20 to Turkey or Czech Republic which will supply to countries other than India. As a result, the logistics cost and import taxes are slashed leading to the reduction of its price by 10 to 15%.
This is done to face the competitive pricing of the compact cars in Europe, according to Hyundai. Hyundai however did not mention the recent worker strike at the plant that bogged down volumes as a reason, which we think was the driving force behind this decision.
On the other hand Hyundai Motor plans to set up a diesel plant near Chennai which will be operational by the end of next year.
