Kibar Holding CEO Tamer Saka said the conglomerate plans to invest in Hyundai Assan, a joint venture of Kibar Holding and Hyundai, for new models, such as a sport utility vehicle (SUV) followed by a five-door hatchback, in the coming period, adding that they are assessing foreign investment opportunities in the automotive supply company Assan Hanil to increase sales volume to European producers.

Tamer Saka, CEO of Kibar Holding, which has international partners including Posco, Daewoo and South Korean Hyundai, told Reuters that they are in a decision stage to produce a new model in the automotive sector, which is likely to be an SUV model.

On a question regarding the production of a new model in the plants which currently produces i10 and i20 models, Saka said they are working on some alternatives, adding that they are highly likely to produce a sport utility vehicle (SUV), but that the timing has not been cleared yet.

Noting that they are planning on a capacity increase rather than investing in a new facility, Saka said the capacity will rise from 245,000 to close to 300,000, and that the plant will continue to produce mainly for the European market.

In reference to their upcoming investment plans, Saka said the company plans to produce a new version of its i10 model in 2020 and will start five-door hatchback production later on.

Saka did not say which SUV model will be produced by Hyundai. Hyundai is currently producing two SUV models named Tucson and Santa Fe. Hyundai Kona in the compact SUV class, on the other hand, will open up to new markets in addition to South Korean and European markets, where the product is currently on sale.

The company plans to produce a new version of Kona with an electric engine, as well as a large and a small-class SUV models by 2020.

Saka said they have plans to grow in Assan Hanil, Kibar Holding's subsidiary in the automotive supply sector. "We made an agreement with a major automotive manufacturer producing in Turkey. We will establish a new facility next to their plant," Saka continued. "The project will start in 2019. It will be a facility to produce for them."