As automobile companies grapple with the problem of declining demand Hyundai Motor India (HMI) on Friday said that it would cut production by 25 per cent from next week. The company also said that it would miss its sales target for 2008. It expects to sell 4,90,000 cars including exports against a target of 5,30,000, managing director of the company H S Lheem said.In an environment when auto companies are temporarily shutting plants to manage inventory build up, HMI has decided to to go in for a two-shift production instead of three. "The reduction from three shifts to two would see a production cut of 25 per cent," he said. The move by the South Korean auto giant follows that of light, heavy and commercial vehicle manufacturers in the country who have taken a number of steps in the past couple of months to align supply with demand. The company said that it might look at raising prices of its cars by 2 per cent next month.
