Hyundai plans to shift part of Indian production

Hyundai plans to shift part of Indian production
Hyundai Motor India is planning to shift production of one of its premium models to Europe after a strike over unionisation at its south India plant that led to the mass arrest of 750 protesters.

The move by South Korea's biggest carmaker is believed to be the first time such a step has been taken because of labour unrest since the country opened up to foreign investors in 1991.

The strike at the Sriperumbudur unit in Tamil Nadu state, which employs nearly 10,000 people, follows a rise in labour problems in India as campaigning for this month's general elections intensifies and economic times get tougher.

“Because of these problems, we cannot keep up with targets and hence some production will shift to one of our facilities in Europe,” said Rajiv Mitra of Hyundai.

Mr Mitra said production of Hyundai's i20 compact saloon was likely to be moved. A decision was expected this quarter.