India’s second largest car maker, Hyundai Motor India Ltd. is planning to move the manufacturing of its premium hatchback model ‘i20′ from Chennai to Europe.

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Hyundai workers (in Chennai plant) were on the hunger strike. The employees were demanding employee union’s recognition, established in 2007. They were demanding agreement including, replacement of fired employees, increasing basic salaries and decreasing the performance- related pay section in worker weges.

Hyundai had prepared to export 80% (or 120K units/annum) of 150K i20’s made in India. Remaining 30K cars was intended for India. The export of Hyundai i20 is aimed to constitute for 40% of its whole export goal for a fiscal 2009-10 which is secured at 300K cars.

The company didn’t reach at its target in export for first few months and it is 80 to 85% of target. However the shift of Hyundai i20 production could badly impact its exports and whole sales from the country.