Hyundai Motor Company, the world’s sixth largest automobile manufacturer and a leader in future mobility has entered into an agreement with Sri Lanka’s Abans Auto, authorizing the reputed local automotive retailer to assemble and manufacture Hyundai automobiles and components under license in Sri Lanka.
The agreement was sealed as a result of lengthy discussions initiated in 2020 between the renowned Korean automotive manufacturer and Abans Auto, its authorised distributor in Sri Lanka, Abans said in a press release.
Hyundai has extensive experience in setting up automobile assembly plants across the world and presently operates in eight countries including the United States, the Czech Republic and India.
Similarly, the proposed assembly plant for Sri Lanka has been designed by Hyundai and incorporates the latest technologies, tools and equipment that conforms to industry 4.0 standards ensuring the maintenance of the brand’s stringent quality expectations.
Abans’ partnership with Hyundai is to set up a complete knockeddown (CKD) vehicle assembly plant that would utilise locally manufactured components, developed and manufactured to Hyundai’s stringent quality standards.
Abans said the CKD assembly format was chosen as it offers local industry the maximum potential for industry development. Human capital development, transfer of technology and exposure to industry best practices are a few of the key benefits that can be extruded directly from the project.
“In terms of the greater contribution to Sri Lanka’s industry, CKD assembly positions itself as a catalyst for driving and developing local industry to the global stage. Components that are locally manufactured will be developed with the technical expertise and guidance from Hyundai to meet its exacting quality standards, thus promising to provide Sri Lanka’s component manufacturing industry with the necessary global certification and recognition.
As such, the project will see the engagement of several local component manufacturers from the SME sector to meet the localization demands stipulated in the Ministry of Industries Standard Operating Procedure for local assembly,” the press release stated.
Abans said the project is presently awaiting approval of the Ministry of Industries.“The timely granting of approval, will initiate the necessary development activities to launch this project of great value,” the press release said.