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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9140)	10/29/1999 2:30:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Hyundai Motors India plans public issue after breaking even hyundaimotorindia.com (Saturday, October 30, 1999) Our Bureau in Calcutta Hyundai Motor India Ltd (HMIL), the wholly owned subsidiary of the $8.24-billion Hyundai Motor Company, has planned to come out with a public issue after it becomes profitable. Addressing a press conference yesterday, J H Kim, executive director, marketing and sales, HMIL, said, "It is too premature to talk about the details of the issue. We will aim at improving the financial performance of the company before we tap the capital market." However, sources said that the parent company is likely to offload around 10 per cent stake in the company. According to Kim, HMIL is approaching its break-even point, which will be achieved once the company sells 70,000 cars. Significantly, it is in the process of finalising plans for launching new models in future. "I cannot comment which segment these are being aimed for as it is still in the planning stage," he said. This apart, while HMIL is eyeing the neighbouring countries for exporting Santro, it will raise prices of this small car up to five per cent next year. Talking about its newly launched mid-sized passenger car Accent in the country, Kim said the company will roll out 1,000 Accent per month. The indigenisation level of Santro, its first product in the small car segment, is 86 per cent and that of Accent is 70 per cent. "In the small car segment, we will take on Matiz in the second year of operation," the executive director said. The recent annual survey of the international automotive market research agency J D Power & Associates has rated Daewoo Matiz above Hyundai Santro. Santro owners have recorded more problems than the Matiz owners. "The problems have arisen because we are using Indian components unlike Daewoo, which is relying more on imports," he said. However, the company will address these problems and take on Matiz in the second year. The ex-showroom prices of the three Accent variants are Rs 532,631 for GLE1, Rs 557,548 for GLE2 and Rs 582,467 for GLS, while the booking amount for the three variants are Rs 485,500, Rs 508,244 and Rs 529,246, respectively. (BS)