Hyundai identifies 31 vendors for car plan

Wednesday, July 9 1997

Hyundai identifies 31 vendors for car plan

OUR BUREAU

CHENNAI, July 8: Hyundai Motor India has given the green signal to 31 Indian auto ancillaries for supply of components for its `Accent' car project coming up at Irrungattukkottai, near Chennai. The company has issued letters of intent to these companies indicating its interest in sourcing specific components from them.

Among the top Indian companies which Hyundai has favoured are India Pistons Ltd for the supply of pistons and pins, and Wheels India, which has been identified as the vendor for steel wheels.

Another company to have recieved an LoI from Hyundai is Ucal Fuel Systems. Hyundai has identified Ucal as its source for throttle-body assemblies. This will be a new product-line for Ucal, which is today the sole supplier of carburretors to Maruti Udyog Ltd. Hyundai has identified RHW Auto Ltd as the supplier of seat-belts. It has also been learnt that Hyundai's talks with Lucas-TVS for the supply of auto electricals are in advanced stages. A final decision is expected shortly. Speaking to The Financial Express, Jong D Bae, executive director, marketing and sales, said localisation is a critical factor in Hyundai's overall manufacturing strategy.

The production of the Accent will initially start with a local content of more than 70 per cent. According to Bae, Hyundai's localisation strategy is progressing according to schedule.

Hyundai will, however, be manufacturing the engine and transmission for the Accent inhouse.

According to Bae, about 20 Korean companies will be setting up shop in India for the supply of components to Hyundai. Of these, two would be fully owned by Korean companies and the rest would be technical collaborations or joint ventures. Hyundai will be importing plant and machinery from Canada, Japan, Germany and Korea for its factory at Irungattukkottai.

Construction work is likely to be completed by the end of the current year and installation of machinery would start early next year. The Accent is expected to hit the market in October next year.