In fact, the company has already seen extensive increase in its overseas production since 2003 when 18.8 percent of total production was done in overseas plants. Last year, overseas plants contributed 45.6 percent to the company’s total yearly production. The new plant in Brazil will be set up in Piracicaba, 157 kilometres (94 miles) northwest of Sao Paolo. The plant will be ready for production by 2011. With production capacity of 100,000 vehicles, the plant in Brazil will create 4,000 jobs in the local market.
Alike India, China and Russia, car market in Brazil has a great potential. So, it is definitely a good move by Hyundai motor company to set a plant in the country where production cost is also expected to be less than in South Korea.