New Delhi, May 2: Hyundai of Korea has deferred its plans to dilute its equity by upto 24 per cent in Hyundai Motor India Ltd (HMIL) this year. "There will be no dilution of equity this fiscal," HMIL's director (marketing and sales) BVR Subbu told reporters here on Tuesday. HMIL had planned to make a private placement of equity or make an initial public offer (IPO) this year.Subbu said HMIL would invest $400 million over the next two years for introducing three new passenger vehicles and capacity expansions. The phasing and structure of the investments will be being worked out by early 2001.
The fresh investment would be a mix of internal accruals, debt and fresh equity from the parent company, Subbu added. One of the new models which will be launched in the first quarter of 2001 is the luxury sedan Sonata which will be priced between Rs 10 to Rs 12 lakh.
The Sonata would be launched in the first quarter of 2001. The company hopes to sell 2000 units of the car in the first year. HMIL plans to be present in India with five models on four platforms by the end of 2003. "This would include four passenger cars and one multi-utility vehicle (MUV).'' While the company has decided to introduce the Sonata next year, it is planning to commence a techno-feasibility study on the MUV Sportage.
"We need to ascertain the market acceptance for the model before launching it here,'' HMIL executive director (marketing and sales) JH Kim said.
Regarding the price hike on account of the sales tax being increased to 12 per cent in Delhi, Santro would become dearer by Rs 20,000 and Accent by Rs 40,000.
Though the government is yet to announce a firm date for implementation of the uniform sales tax, Subbu said that Santro's price tag would be revised upwards by Rs 18,000-20,000 and that of Accent by around Rs 40,000.
"We are still awaiting the government gazette in this regard...whenever the decision is made, the prices would automatically go up,'' he added.
Firm to sell used cars
Hyundai announced its plans of getting into the used car market with the company owned Hyundai Motor Plazas. Over a period of next two years, the plazas will start buying back Hyundai cars, refurbish them and resell them in the market as used cars. "The activity will be strictly for Hyundai cars only and we will not take in any other brands and models,'' a top company official said. "The plazas were set up with this goal in mind as part of the original strategy when we set up the distribution network", he added.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.