Korean car maker Hyundai is looking to setup shop
for its commercial vehicles division in India, reports Business Standard. Y K
Koo, MD and CEO, HMIL, has confirmed conducting a feasibility study to evaluate
the prospects of introducing Hyundai commercial vehicles in India.
A team from HMC’s commercial vehicles division
visited India in June to study the market and meet potential business partners.
Hyundai’s passenger car dealerships were also contacted to gauge their interest
in selling CVs. However, Y K Koo added that the passenger car division would
not be directly involved in the process.
This is not the first time Hyundai has attempted to
enter the Indian commercial vehicle market. Back in March 2008, Hyundai Motor
Co. agreed to terms with UK-based Caparo Group’s India division to produce and
sell luxury buses in India. The plan was to setup a manufacturing facility in
Sriprembudur or Orgadam in Tamil Nadu or Nellore in Andhra Pradesh and commence
production in the final quarter of 2008-09. However, in October 2008, media
reports emerged suggesting the plans had been put on hold citing a global
economic crisis as a possible reason.
In December 2016, it was reported that the Indian
market was on top of the list of the markets Hyundai wanted to expand its
commercial vehicles business to. Also, Hyundai was reported to be looking for
space to setup a manufacturing facility to produce commercial vehicles for the
domestic, as well as export markets, similar to how Daimler India Commercial
Vehicles (Bharat Benz) operates.
Hyundai will join a growing list of major global
commercial vehicle manufacturers in India including Volvo, Daimler, MAN, and
Scania. However, the Indian market continues to be dominated by domestic
players Tata and Ashok Leyland in the HCV space and by Mahindra in the LCV
space. HMC might consider entering the market with a range of premium buses and
trucks from their Universe and Xcient series respectively.