Seoul: South Korean car giant Hyundai Motor said Friday it is considering shifting production of one of its premium models to Europe from India.
“Hyundai Motor is considering moving production of the i20 to Europe because about 90% of them are being shipped there,” said spokesman Jinho Ki.
He declined to comment on whether a labour dispute that has hit Hyundai Motor India was behind the review.
Friday’s Financial Times said the plan follows a strike at the carmaker’s plant in the southern state of Tamil Nadu which led to the arrest of 750 protesters.
The paper said it would be the first time such a step had been taken because of labour unrest since India opened up to foreign investors in 1991.
“Because of these problems, we cannot keep up with targets and hence some production will shift to one of our facilities in Europe,” Rajiv Mitra of Hyundai Motor India was quoted as telling the daily.
Mitra said production of the i20 compact saloon was likely to be moved and a decision was expected this quarter.
The company originally planned to produce 120,000 i20s this year at its south India plant, of which 80,000 would have been exported — mostly to Europe.