Korean car company Hyundai has finally decided to shift the production of the i20 for European markets, to Turkey. The company had so far been manufacturing the i20 at its Sriperumbudur plant near Chennai, which was beset by labour agitations. The arrangement was also turning out to be financially untenable because India did not have free trade agreements with European nations.

Hyundai will continue producing the car for the domestic market and for exports to non-European countries at the Sriperumbudur plant. The company is targeting a production of 50,000 units of the i20 for the Indian market, and 20,000 for non-European markets outside India.

In Europe, the i20 will be manufactured by Hyundai Assan – a joint venture between Hyundai Motors and a Turkish conglomerate, Kibar Holding, at its manufacturing plant in Izmit. The Izmit plant currently produces the Verna and the Lavita. The company will be producing 70,000-80,000 units of the i20 at this plant, and is planning to invest $75 million in it.

Courtesy: www.driveinside.com