In what comes as a slightly belated birthday bash, Korean car company Hyundai will celebrate its fifth year of selling cars in the country in a big way when it crosses half a million cars milestone in December.

The company, which has been enjoying a hugely successful run in the country so far, hit the one lakh car mark in its first nineteen months but its last lakh was added in less than eight months. Hyundai has been producing and selling around 12,500 cars every month for the last eight months to usher in its five lakh car mark.

December will also mark the commencement of the company's next big expansion initiative "We will invest $200-250 million to ramp up the production in our Sriperumbudur facility from the existing 12,500 units per month to 20,000 units per month. The expansion will be completed by September 2004," said B V R Subbu, president of Hyundai Motors India.

The company intends to use the additional capacity to fulfill its export commitments. Hyundai hopes to export 30,000 vehicles this year and double the numbers next year.

Ties up with PNB for auto loans

Hyundai on Tuesday announced an auto finance tie-up with Punjab National Bank. According to Hyundai, prospective Hyundai buyers will get a interest rate of 9.5 per cent for a three-year loan (10 per cent for 3-7 years) charged on a daily reducing basis, a waiver of prepayment penalty, zero processing fees and no advance EMI.

PNB chairman and managing director, S S Kohli said, "The tie-up is complimentary as Hyundai and PNB are actively pursuing growth through expansion of non-metro businesses."

B V R Subbu, president, Hyundai Motor India said, "I expect the alliance to help us deepen and widen our market penetration."

PNB expects to register a 20 per cent growth in its car loans portfolio, from the current Rs 600 crore (Rs 6 billion), in the first phase covering 176 branches.

The parent company has invested around $700 million in India so far but Subbu said all future capital expansion will be made from internal accruals. With the latest round of expansion, the total investment in the company will cross one billion mark by end-2004. The company, which broke even in its first year of operations, has dismissed all plans to
made a public issue as discussed in the past.

The company continues to drive its customer focus ahead by keeping its authorised service stations open all night in metros starting December.

Hyundai has also tied up with Indian Oil to offer services of a Hyundai trained service assistant at all IOC petrol pumps on major highways.

Hyundai entered the country in September 1998 with the Santro and has expanded its portfolio to straddle the most significant segments of the market. The B segment hatchback, the Hyundai Getz and a C plus segment offering the Elantra are waiting to hit the roads in 2004.