Hyundai may expand Izmit site capacity to 300,000 units

Article by Anita Panait, on July 24, 2013

Hyundai may expand the production capacity of its Izmit site in Turkey to 300,000 annually, according to the plant’s head of production, Uygur Kosal. Hyundai is currently expanding the site’s annual capacity from 125,000 vehicles to 200,000 units to accommodate output of the new i10 minicar this September. Hyundai is planning to build the i10 for Europe in Turkey instead of India.

Kosal said the plant’s capacity may be expanded to 300,000 after they reach the planned capacity. The site also builds the i20 subcompact. According to LMC Automotive, Hyundai may need the output increase for the i10, as they expect the minicar to sell in much higher volumes than its predecessor.

LMC analyst Carol Thomas remarked that the strong i10 sales means that Hyundai will either have to importing a proportion of i10s from India or expand the capacity of its Turkish site further.

Hyundai sold 26,036 examples of the current i10 in Europe in the first half of 2013, according to market researchers JATO Dynamics. Hyundai will unveil the new i10 at the Frankfurt auto show in September and will start selling the minicar in Europe at the end of year. The new i10 will be sold in five-door, gasoline versions only.

Hyundai has set its sights on Europe. Having experienced enormous success in the A-segment, Hyundai intends to keep the momentum going by its production of the new Hyundai i10, a car engineered, design, and manufactured in Europe for the European market.

The first-generation Hyundai i10 has already made its mark known all over Europe. At the 2013 UK What Car? Car of the Year awards, the Hyundai i10 was named “Best City Car” in the category of cars which cost less than £9000. It has garnered a loyalty rate of 54% in the five biggest European markets. These are impressive numbers and are better than the segment average, given that the average across Europe is a 48% loyalty rate.

Having established its presence already in the top European markets, Hyundai sets out to replicate this success with the new i10. Hyundai plans to do this by upgrading its standards in the European A-segment, introducing best in class features in design both interior and exterior, space, and safety and comfort. A new feature of the Hyundai i10 is the Hyundai Motor “true value”, a string of features found in higher Hyundai models (like the i30 and the ix35) that are incorporated in the i10 to ensure it is of the highest efficiency and the highest quality in its segment.

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