Hyundai looks to increase sourcing components from India

South Korean auto major Hyundai Motor Company is looking at increasing sourcing components from India for its global operations.

Currently Hyundai sources only a negligible percentage of components from India for its global needs but wants to increase the level.

"India can be a hub for the components industry. Hyundai will increase (sourcing) from India," Hyundai Motor Company Senior Vice-President (Asia & Pacific Division) Young-Kil Chun said here.

He, however, added that for India to emerge as a major outsourcing hub for components, it would need to improve and maintain the quality of products.

"We do have our vendors based in India who have helped us localise, but if India is to become a global outsourcing hub then a very important issue needs to be addressed first, which is the need to maintain consistent quality," Chun said.

Hyundai already sources up to 85 per cent of the components locally for the cars it makes in India, the company's second-largest market in the world.

Chun said the company has reduced production at the Indian plants in view of the worldwide slump.

On whether Hyundai had plans to bring out a model to compete with the Tatas' Nano, Chun replied in the negative.

"We do not have plans to compete head-on with the Nano, although we will come up with a small car in the next two-three years, which will be placed below the existing Santro.

But overall we feel that the launch of the Nano will expand the market and once that happens, it will be good for all manufacturers including Hyundai," he said.

Asked about the company's plans of getting into commercial vehicles in India, Chun said: "We do not have any plans right now. There’s no competitiveness in that market for us –- there are Tata and Mahindra."