Hyundai prepares more investment

Fastest-growing brand in the Brazilian market, the Hyundai deals with a second phase of investments in Brazil. The plan is based on expansion of productive capacity and greater nationalization of cars produced in the plant in Piracicaba (SP), opened just over a year ago.
The line was designed to produce 150 thousand cars per year, but this ability proved to be insufficient given the success of the HB20, the compact mounted inside paulista. Between January and November, Hyundai sold more than 140 thousand cars in all three versions of the model: hatch, sedan and crossover. The expectation, according to the company itself, is that this volume climb to around 165 thousand units with the plates issued planned for this month.
Worthy of celebration, these results surpassed expectations that the automaker had for the first year of operation in the country. On the other hand, the numbers are imposing new challenges to the ambitions of the Korean group to reach 10% of the market, since the potential for growth has run into a production capacity fully taken.
To account for the strong demand, which came to cause waiting lists more than four months after the launch of the HB20, were required to work overtime and, in September, the automaker had to throw, ahead of schedule, the third shift of production at Piracicaba. Only this new workday demanded signings of 700 workers and additional investments of R $ 60 million in machinery and equipment.
Now, with the factory operating 12:0 am and using all its potential, Hyundai sees himself forced to increase capacity to follow growing. William Lee, President of automaker in Brazil, says that solutions to this situation are now being evaluated. "We have a lot of options to grow even more in Brazil and this is part of our studies," said the Executive at Value shortly after attending Awards held on Thursday by the Agency to promote paulista Sao Paulo Invests.
However, before taking any decision, like hiring more workers or increase the size of the line, the company will await the results of the first half of 2014 to assess whether sales of the HB20 follow "hot" after the first impact caused by the car. The automaker, likewise, hopes a definition on the new rates of tax on industrialized products (IPI) and its implications on the demand for cars. The Government promises to withdraw gradually from tax rebates, but still did not inform what will the new tax rates.
If necessary, there's room to grow in Piracicaba. Ricardo Martins, Hyundai's Manager in charge of Corporate Affairs, says the factory today occupies only slightly over half of the area available for production. "We can still expand by approximately 45% of this land."
On another front, the automaker progresses on study of investment in an engine factory and Exchange in the country, to meet the demands for nationalization of contents of the new automotive system. Today, both thrusters as the transmission, which have significant weight in the value of a car, are imported from Korea. Still, the Hyundai guarantee comply with current requirements off new automotive policy. According to Malik, the brand's performance in the first four months of next year should be decisive for the definition of the new investment cycle.
Today, adding imports and production of utilities made by its local partner, the Caoa group, Hyundai represents almost 6% of the total sales of cars and light utility vehicles in the country. With the arrival of the HB20, its sales in the Brazilian market have doubled this year, adding almost 191 thousand licensed cars from January to November. This performance puts the Hyundai as the sixth best-selling brand in the country.
According to Lee, the automaker wants to consolidate its brand in Brazil in 2014, mainly with the exposure will have on the media as a sponsor of Fifa during the World Cup. "The World Cup will be in our focus," said the Executive, just before embarking for Costa do Sauípe, Bahia, and follow the draws of the groups of the World Cup on Friday.