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In an attempt to boost its share in the Indian passenger car market, Hyundai Motor India (HMIL) is aiming to increase its production capacity to 8.2 lakh units annually from June this year. The auto company aims to reduce the backlog of orders as the semiconductor supply issues have been improving, said the automaker's MD and CEO Unsoo Kim. PTI reports that Hyundai, which was among the worst-hit auto manufacturers due to the microchip shortage, currently has a backlog order of around 1.15 lakh units, the majority of them being for the popular SUVs like Creta and Venue.
Speaking about the production hike strategy, Kim said that the automaker is experiencing an improving semiconductor situation in 2023. "So, we are increasing our production to meet our customers, and we are positive for this year," he said while also adding that in 2022, all the auto manufacturers were suffering due to the shortage of electronics components, but the situation is getting better. He hopes the semiconductor situation will improve further this year despite global issues like the Russia-Ukraine war and geopolitical tensions between US and China.
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Kim also emphasized on the fact that India doesn't have a semiconductor industry at the moment and relies heavily on imports from China, South Korea and Europe for electronic components. He said that despite HMIL reaching 85 per cent localisation for its vehicle production, the auto company still has to import some key electronic components from other global markets.
Speaking about the huge backlog of orders for the Hyundai Creta and Venue SUVs, HMIL CEO Tarun Garg said that the automaker is increasing the supplies. "Last year, Creta was 140,000, which was 12 per cent more than in 2021. From June, we would have increased the plant capacity to 820,000 units from the current 760,000 units per annum," he added. Garg also said that as the company gets more semiconductors, it will keep on not only increasing the capacity for more sales of Creta but will also introduce new models to the market.