Hyundai’s South Korean production accounts for some 40% of global output. Hyundai does not operate manufacturing plants in Southeast Asia, with plants in closest proximity to the region being its plants in India, China and South Korea. Given Hyundai’s lack of manufacturing presence in the region, kits and completely built-ups (CBUs) for Malaysia are likely to be imported directly from the South Korean plants. At this juncture, the indicative closure of Hyundai’s South Korean plants is only for about a week, while players typically have a buffer of one to two months’ worth of inventories. However, these parts are understood to be well stocked up at the moment and, in an extreme scenario, can be easily substituted from other suppliers.

Source: The Edge Markets February 07, 2020 01:52 UTC