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Abans Auto to assemble and manufacture Hyundai automobiles in Sri Lanka

19 August 2022 08:23 am - 31     - {{hitsCtrl.values.hits}}

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  • Abans’ partnership with Hyundai is to set up a complete knocked down vehicle assembly plant
  • It would utilise locally manufactured components, developed and manufactured to Hyundai’s stringent quality standards
  • The project will see the engagement of several local component manufacturers from the SME sector to meet the localization demands
  • The project is presently awaiting approval of the Industries Ministry 

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.

 


  Comments - 31

  • Lion Friday, 19 August 2022 08:25 AM

    The concerned minister may ask a huge commission to approve it since they are used to it.

    Samson de silva Friday, 19 August 2022 09:00 AM

    Remember the Volkswagen manufacturing plant that was coming to SL over 4 years, as promised by the then PM (2015-2019), the banku hora and the wadakaya!

    Overseas Democrat Friday, 19 August 2022 09:27 AM

    Don’t be so negative thinking ! This is a big problem in Sri Lanka. In fact you should be happy and supportive for local manufacturing, not coming from a politico. Perhaps jealousy is playing here

    Thiru Friday, 19 August 2022 09:42 AM

    Nothing will materialise because of commissions that would be demanded by the Sri Lankan Ministers and Ministerial Secretaries. The reason there is so much corruption in the country is free education.

    Anton Weerasinghe Friday, 19 August 2022 09:47 AM

    Some Sri Lankans are very petty-minded, like Mr. Samson de Silva. As long as these types of people are living in Sri Lanka, the country will not go forward.

    Lumbini Friday, 19 August 2022 09:49 AM

    Good initiative. All the best.

    LUCKY Friday, 19 August 2022 10:06 AM

    The Ministry of Industries needs to act fast as this is a golden opportunity in more than one respect. Hope it bears fruit and not end up in the garbage can like those of the past !

    Benjamin George Friday, 19 August 2022 10:25 AM

    Best wishes to Abans n Hyundai. Do not give into any corrupt politicians. Path breaking initiative.

    Athk69 Friday, 19 August 2022 10:31 AM

    It would be good if the CKD facility can produce electric vehicles that can be exported to the EU and other markets at competitive prices.

    Amaran Friday, 19 August 2022 10:31 AM

    EXCELLENT strategic move. We can export to foreign countries and earn foreign exchange. Also this kind of long term strategic investments will create more jobs in sri lanka. CONGRATULATIONS to Abans

    Gayan Friday, 19 August 2022 10:41 AM

    Great news.Im runing a medium scale manufacturing firm and we can contribute too...

    Citizen k Friday, 19 August 2022 10:52 AM

    Does this mean vehicles will be realistically priced like in India or do we still have to pay unrealistic prices ?

    CitizenP Friday, 19 August 2022 10:59 AM

    Please get advice from Ranil Rajapaksha...because he has enough experience in Volkswagen assembly plant..

    Karu Friday, 19 August 2022 11:13 AM

    Great. The right way to move forward. Surely local University students will not get employment opportunities here for their outdated mindset.

    Karalasingam Sivalingam Friday, 19 August 2022 11:15 AM

    Over due project, atleast let's there be some constructive move to save foreign exchange by producing cars here. It should be at least half the current market value.

    Giriya Friday, 19 August 2022 11:18 AM

    Is it Full Electric? Hybrid? Or just Petrol. We should not promote Petrol cars. Either import or assembling locally.

    ravin Friday, 19 August 2022 12:01 PM

    Excellent move. We need to begin from somewhere. Let's do it. Be it anyone ask for any sort of gratifications, publish it. Be more transparent. Let's see where we go wrong. Our gays and gals go overseas there are performing extremely well and there is no reason why they can't perform in there own mother land.

    Dilshan Perera Friday, 19 August 2022 12:33 PM

    Last time in 2018 it was Senok Automobiles doing the Western Automobiles scam.. this time it's Abans Automobiles conducting Ranils latest fake industry!

    Motorist Friday, 19 August 2022 01:03 PM

    If the proposed manufacture are of fuel driven vehicles, this will aggravate the already existing crisis. The project should be for Electric Vehicles.

    SAM Friday, 19 August 2022 01:12 PM

    Excellent project.

    Fathima Lai Friday, 19 August 2022 01:45 PM

    I would never buy a vehicle from Abans because even my iron they took to repair on warranty and never returned - this is the industry they have been for decades. A car?

    Grahame Leitch Friday, 19 August 2022 01:53 PM

    this is a very good initiative but it has taken from 2020 till now it should have been well on the to completion by now, this is the problem in Sri Lanka so much red tape and commissions so let's hope this President gives the go ahead right away and hope all involved is held accountable with honesty this will be good for the country

    Be Positive Friday, 19 August 2022 01:58 PM

    Great Initiative ! Hope it will be mainly be focused on electric vehicles. Maybe soon we can start exporting ! I think if this is successful, it will encourage other to follow.

    Patriot Friday, 19 August 2022 02:33 PM

    Congratulations Abans. Pay attention to produce energy conserving and environmental friendly vehicles whether electric or fuel.

    RP Friday, 19 August 2022 08:12 PM

    All the best Abans! I always admired successful entrepreneurs like late Upali Wijewardena and late Kili of Maharaja's. Government need to lend support and promote local industries and foreign collaborations. Unfortunately, most of our politico's are bribe seekers and corrupt. Our Construction industry is a prime example. They were mere spectators while the Chinese construction companies were granted "Lucrative" constructions with their own Chinese labourers.

    I'm placing the first order Saturday, 20 August 2022 06:59 AM

    From humble beginnings selling Bamix and Goldstar TVs, Abans has risen to manufacturing Hyundai cars. Mrs Aban Pestonjee had the vision to take a small business and make it big and we should be proud of her achievements. Congratulations!!

    Ceylonese Saturday, 20 August 2022 07:49 AM

    I thought the production of the Hyundai Automobile is no more and is superseded by the Kia the Korean company which seems to be very popular the world over for it's sleek design performance and is competitively priced.

    vince Saturday, 20 August 2022 06:09 PM

    Wrong assumption. Kia Corporation, commonly known as Kia, is a South Korean multinational automobile manufacturer headquartered in Seoul, South Korea. It is South Korea's second largest automobile manufacturer, after its parent company, Hyundai Motor Company, with sales of over 2.8 million vehicles in 2019.

    Munas Samsudeen Saturday, 20 August 2022 06:36 PM

    Importing vehicle is banned in Sri Lanka even if its is Knock Down Unit. Mahindra factory in Welippanne is almost closed down these days. How come Hyundai got the permit to import KNU. You need DOLLARS to import anything from abroad.

    Manish Shrivastava Wednesday, 24 August 2022 01:54 PM

    Atleast someone is thinking about it . Congratulations Abans . It may take 15-20 years for effective manufacturing with local component suppliers .. great initiative . All the best .

    Chaminda Senarathne Friday, 03 November 2023 03:07 PM

    Thats a good start. I suggest that abans can re export to African market too. Then we earn foreign exchange too


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