Hyundai Motor Company is planning to increase the annual production capacity of its plant in Sao Paulo, Brazil from 180,000 vehicles to 220,000 this year.
In a related move, the module manufacturing plant of Hyundai Mobis that is located next to Hyundai Motor plant is going to increase its annual production capacity from 190,000 units to 220,000 units.
The move is part of the company's efforts to offset sluggish sales in the United States with brisk sales in the fast-growing Latin American market.
Hyundai Motor is currently expanding its facilities in Brazil, which have been producing the HB20 hatchback, HB20S, HB20X and Creta SUV since 2012. The annual production capacity of the plant was increased from 150,000 vehicles to 180,000 in 2014.
The plant of Hyundai Mobis is in the process of expansion, too. The plant produces driver seat modules, rear chassis, and other parts. Every manufactured product from the plant is supplied to the Hyundai Motor’s manufacturing facilities located in the same complex. The plant’s module production lines are connected to the Hyundai Motor’s plant by conveyor belts .
These days, Hyundai Motor is doing very well in the Brazilian market. Last year, the company sold 201,955 cars and posted a market share of 9.3%. Although the sales volume edged down compared to 2013, the company's market share jumped from 5.95%. This is because the top four in the market – GM, Fiat, Volkswagen and Ford – showed a decline in market share for the past couple of years with a recession going on in the market. Fiat’s local market share fell from 21.34% to 13.41% between 2013 and 2017 and that of Volkswagen fell from 18.34% to 12.53% during the same period. At present, Ford’s share in the market is 9.52% and that of Hyundai Motor Company is close to it. The HB20 hatchback was chosen as the car of the year in 2013 and was one of the best selling cars in 2014.