NEW DELHI (Reuters) -- Hyundai Motor India Ltd., the country's second-biggest carmaker, said on Monday it had orders to export 43,000 cars in 2003, but would ship only 30,000 owing to capacity constraints.
The wholly-owned subsidiary of South Korea's Hyundai Motor Co., which exported 8,245 cars in 2002, is developing India into an export hub for small cars and will begin selling its popular Santro compact car in Europe this month.
"We are having a little bit of a problem balancing domestic and export demand," Jae Il Kim, Hyundai India's managing director, told Reuters on the sidelines of a news conference to launch its Terracan sport utility vehicle.
"At the beginning of the year, we had projected exports at 25,000 cars but we now have an order book of 43,000. We should do exports of about 30,000 this year and will carry over the rest of the order to the next year," he said.
Hyundai, in India since October 1998, makes the Santro hatchback, the Accent and Sonata sedans at its plant on the outskirts of Madras, which has a capacity to make 150,000 cars a year. It will import the Terracan fully built from South Korea.
It will spend $200 million to expand capacity to 250,000 units by mid-2004 to meet growing domestic and export demand.
Kim said the Indian unit will also begin exporting 50,000 engines and transmission units a year from the middle of next year to Hyundai plants in South Korea and other countries.
Hyundai officials told the news conference they expected to sell over 500 Terracans in the fiscal year to March 2004.
The vehicle, which carries an ex-showroom price 1.85 million rupees ($40,102) in Delhi, is powered by a 2.9 litre diesel engine and will compete with the Chevrolet Forester and the Mitsubishi Pajero.
Kim said Hyundai India would not be affected by a strike at its parent's production facility in South Korea owing to the large proportion of locally made parts and sufficient stocks of imported components.