Hyundai Motors has announced that the production of much awaited premium hatchback i20 will start by the end of this year at its upcoming facility at Chennai for sales in the overseas market.

Mr Arvind Saxena, senior vice president sales and marketing for Hindustan Motors India Limited, told media persons “We may start manufacture of i20 by the end of 2008 at the Sriperambudur facility in Chennai plant.” The facility is expected to become functional by end of this year. The new premium hatchback is likely to cost Rs 5-6 lakh.

The premium small car will be a step above the popular i10, which hit the roads in October 2007. The small car Hyundai i10 was manufactured in India for its global markets as well. The car went on to become instant hit and became the most favorite of car experts. It is a popular car among masses in India as it already won a lot of appreciation and awards for its performance last year.

Initially, Hyundai i20 will be manufactured for its overseas markets. The new plant has a capacity to manufacture 6 lakh cars per annum, he said adding though we have not yet decided exact dates to launch the car in India, it will probably be launching end of this year.

Hyundai Motors will step up efforts to make India the hub for its exports to overseas markets. The company plans to sell at least 50 percent of cars to markets outside India including the i20.

The company has set a target to sell 2-3 lakh i10 in 2008, a similar number for overseas sales. Since its launch in October, the company has got an order for 31,000 units of i10 cars. Meanwhile, the company plans to launch the LPG variant of its best selling hatchback Santro Xing by September. The tall hatchback is currently available in models of CNG, diesel and petrol. LPG variants of Getz Prime and Accent will be rolled out by the third quarter of 2008, said Mr Saxena.