Hyundai Czech Plant Eyes New Export Markets

VIENNA – Hyundai Motor Mfg. Czech is looking for new export markets due to the economic slump that has taken a bite out of industry new-car demand in some European countries.

Unlike some car plants in the region, Hyundai Czech’s 4-year-old Nosovice facility has been able to dodge the effects of the sluggish market so far. It launched a third shift in September 2011 and is on pace for record output in 2012.

Original plans called for the production of 300,000 cars this year, but the final figure may end up slightly over that mark.

However, even Hyundai is feeling the effects of the volatility in some important European markets.

“The ongoing economic crisis has a negative impact on our sales orders in Europe,” HMMC President Kim Jun-hais quoted as saying by a company publication. “That’s why HMMC has decided to find new markets.”

Kim points to Australia, New Zealand and Egypt as potential new export opportunities.

Most of the Czech-made Hyundai cars wind up in European markets, but some are shipped to Africa and the Middle East, mainly Israel.

Four models are made at the plant. Volume production of the second-generation Hyundai i30 5-door hatchback launched in January, while the new-generation i30 wagon was added in June.

The portfolio also includes the hot-selling ix35 cross/utility vehicle, known in the U.S. as the Tucson, as well as the B-segment ix20 multipurpose vehicle.

Volume production of the new Hyundai i30 3-door hatchback, which has no predecessor in the auto maker’s model range, will be launched later this month. This will be the first time the facility will produce five models at the same time.

HMMC celebrated its fourth anniversary of volume production earlier this month. The plant has built about 835,000 cars since launching.

In addition to Hyundai vehicles, the total figure includes some 82,000 B-segment Kia Venga and ix20 multipurpose vehicles. Production of the Venga began in September 2009 in the Czech Republic but was transferred to the Kia Motors Slovakia plant in mid-2011.

HMMC’s largest export market during its first four years was Germany with about 138,000 units, followed by the U.K. (85,000), Russia (72,000), Italy (61,000) and Spain (59,000).