Hyundai Rotem wins India rail bidHyundai Rotem, a subsidiary of Hyundai Motor Group, said yesterday it won a 1 trillion won ($897 million) order from India’s Delhi Metro Rail Corporation (DMRC) to supply railway vehicles.
The company, which manufactures trains, machinery and tanks, said it will supply 636 trains after winning phase three of DMRC’s metro project. These trains will operate lines No. 7 and 8 of the DMRC starting in 2017.
Well-known rail manufacturers such as Canada’s Bombardier, France’s Alstom and Germany’s Siemens participated in the bidding, but Hyundai Rotem said its railway vehicles’ electric consumption efficiency was better than that of competitors.
Hyundai Rotem has been moving quickly recently to expand its presence in the international railroad vehicle manufacturing business, securing 2.5 trillion won worth of orders last year. That was double the value of its orders from the previous three years combined.
The company landed in India in 2001 after winning an order for 280 rail cars. Hyundai Rotem said it is now the No. 1 supplier in India after taking 60 percent of current orders.
Since 2011, it has increased product management personnel while utilizing the R&D work force of Hyundai Motor Group. The group said it aims to make Hyundai Rotem one of the five top rail vehicle companies in the world, with 5 percent of market share.
The world’s largest automotive group said it wants to grow Hyundai Rotem’s railway business to a level comparable to that of Hyundai Motor and Kia Motors. To achieve its goal, the train manufacturer said it will explore emerging markets like Latin America, while pushing to collect high-speed train orders and export trams and magnetic levitation trains.
In particular, it hopes to create synergy with Hyundai Engineering and Construction, also an affiliate under Hyundai Motor Group, to win turnkey railway projects.
But Hyundai Rotem said government support is needed to further develop its railroad vehicle industry.
By Joo Kyung-don [email@example.com]