Hyundai Motors India Ltd. has decided to manufacture the high end cars including Sports Utility Vehicle Santa Fe and its luxury segment sedan Sonata locally to make it more cost efficient. This will make them reduce their expenses due to the import of these cars which has now become a burden due to depreciation of rupee, this will also let them save on Import duty which is currently very high compared to if the automaker manufactures it locally in India.
“We have already started complete manufacturing of the Santa Fe in India from August this year,” said Arvind Saxena, director (marketing and sales), Hyundai Motor India. “As a result, we have been averaging 225-250 units of the Santa Fe every month. This will be the company’s focus area in the future, too.”
Cars that are imported in the CKD format, or with a pre-assembled engine, gearbox or transmission mechanism, have to pay a 30% duty. If the components of the car are further knocked down, the import duty is reduced to 10%.