Hyundai Could Boost Capacity in Turkey, Again

Turkey's Hyundai Assan Otomotiv AS expects to complete a $600 million project by September that will expand capacity at its factory in Izmit, Turkey, by 60% to 200,000 units.

But production chief Uygur Kosai predicts that the facility a joint venture of Hyundai Motor Co. and Turkish conglomerate Kibar Holding AS may eventually boost capacity to 300,000 units, Automotive News Europe reports.

The current expansion is to prepare the Izmit plant to make Hyundai's next-generation i10 city car. That model will go on sale in Europe in September. Research firm LMC Automotive tells ANE it expects a sharp upswing in demand for the new model that could trigger a second expansion unless Hyundai decides to continue supplying Europe with i10s made in India.