Hyundai 2006 Annual Report Download - page 45

Hyundai Motor Company Annual Report 2006Open Road
41
HMC Asian sales and production are led by the manufacturing centers in India and China. From these centers
in 2006 the Hyundai brand continued its startling growth. In India people have adopted the HMC brand as a
reflection of their own culture. This is evidenced by an amazing 19 percent growth from March 31st 2006 to
April 1st 2007. The Santro has been called the car of the people , while the Sonata is a recognized symbol of
affluence in India. In China, already huge increases in car sales, coupled with an ever increasing desire for
vehicle ownership, expectations are for a further transformation over the next ten years which will see China
become an enormous global auto market.
• INVESTMENT & PRODUCTION
HMC’s investment in China is the envy of many of our competitors
all of whom recognize the important role the world’s most populous
country will play in the future of motoring sales and manufacture. In
2006 BHMC broke ground on its second manufacturing plant in
China which, when complete, will double the production of Hyundai
vehicles in China to 600,000 units per year.
The completion of the second manufacturing plant in India remains
on target for October 2007. During a visit to India by HMC CEO and
Chairman Mong Koo Chung, the future importance of the Indian
car market was made clear as the Chairman said he expects the
current, already impressive market, to grow by 400 percent over
the next decade.
When finished, like the second Chinese plant, the new Indian plant
in Tamil Nadu will add 300,000 units a year to India’s production
capacity. HMI is aiming to have a 20 percent market share by 2010.
Further growth and investment was achieved in other areas of the
Asia/Pacific region. In Australia Hyundai broke ground on a new
Australia Headquarters and Training Center in Macquarie Park,
just north-west of Sydney. The A$ 70 million (US$ 50 million) facility
is scheduled to be completed in 2008 and will house 250 Hyundai
Motor Company Australia (HMCA) employees as well as staff from
Hyundai Steel and Hyundai Capital Glovis Australia.
In Malaysia Technical License Agreements were signed between
HMC and Inokom Corporation Sdn. Bhd. (INOKOM). The two
agreements allow INOKOM to manufacture in collaboration with
HMC, a super-mini category vehicle, codenamed ‘TB’ and to
assemble and market Hyundai HD65 trucks in Malaysia.
These agreements give Hyundai a manufacturing presence in
South East Asia where none have previously been. Along with
highly developed economies of Singapore and Malaysia, South East
Asia holds many new and emerging markets such as Indonesia
and Vietnam.
• RESEARCH & DEVELOPMENT
Research and development in Asia/Pacific is operated from our
Hyundai Japan Research & Development center in Chiba, Japan.
Historically the vanguard of technological development our R&D
center in Chiba works in close collaboration with our Korean
centers to provide a nexus of vehicle research, development and
planning, design and testing.
Located on the outskirts of Tokyo our Chiba center is a world-
class facility which focuses on developing world first technologies
in areas of environmental sustainability, safety, performance,
styling and structural integrity.
In 2006 HMC broke ground on
a new Australian national
headquarter building in Ryde,
New South Wales to reinforce
the Hyundai brand in Australia.