Saturday, 5 July 2014

Hyundai to boost output in Brazil?

Hyundai could be on the point of increasing production at its Sao Paolo plant in Brazil, if a recent report in the Korea Herald can be believed. 

A Hyundai official is reported as saying the company will increase production by 5,000 units a year to 185,000 units from 2014 onwards.

The very modest extra capacity is intended to support the HB20, which has been among the best-selling vehicles in Brazil's currently difficult market. The HB20 is the company's first vehicle designed exclusively for the Latin American region.

The plant has been increasing production steadily, moving from a single shift to two shifts per month after production started. A third shift was added in September 2013. 

Up to May of this year, Hyundai's HB range took third-spot among Brazil's top-ten vehicles, selling 67,042 units in the year to date to secure a 6.7 per cent market share share and achieve a 14 per cent growth rate in a market down 5.4 per cent for the year.

According to forecast from IHS Automotive, Hyundai will add the ix25 product in Brazil in 2016. This could boost output beyond 200,000 units from 172,382 units in 2013. HIS is forecasting 189,000 units in 2014.

Through IHS Automotive’s forecast period, the facility's production could grow to 220,000 units a year.


Hyundai has faced capacity constraints globally, which have impacted on the company’s market share. 

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