As IAB has mentioned earlier, Hyundai Motor has set up a plant in Turkey to meet rising demands for the i20 after labor strikes bogged down production here in its Chennai plant. Hyundai had also stated that the absence of free trade agreement between India and Europe made it unfavorable to continue exports.
The Turkey plant will produce more versions of the Hyundai i20 for the European markets from May 2010. A MPV version was also spotted testing last week.
The three and four door versions of the Hyundai i20 are being manufactured by Hyundai Motor India and supposedly the five door version will be produced at the plant at Izmit next year.
The annual production of this plant will be 80,000 units which will cater mainly to European markets.
Hyundai Assan, a joint venture between South Korea’s Hyundai Motor Co. Ltd and Turkish industrial conglomerate Kibar Holding, will begin manufacturing the Hyundai i20 in Turkey from May 2010.
The Hyundai i20 will roll out of a plant in the northwestern industrial city of Izmit, with a $75 million investment.
The plant’s maximum annual capacity is 80,000 units a year in the first phase, and 70,000 of those models are for consumption of other European countries.
Production at the Chennai plant was bogged down due to labor strikes. Further, India was not part of any free trade agreement with European nations which was an unfavorable condition.
However, Hyundai will continue to churn out vehicles for non-European markets like Vietnam, Australia, New Zealand, Latin America and other South East Asian countries from its Chennai plant.
Source – Wall Street Journal
