Hyundai Motor India set to invest Rs. 1,600 crore at its Chennai facility; to sign MoU with Tamil Nadu state government on November 5, 2012

Saturday 03 November 2012, 11:59 AM by

Hyundai Motor India Limited (HMIL), the country's second largest passenger car maker, has declared to invest a sum of Rs. 1,600 crore ($ 300 million) for establishing a new engine production unit at its current premises in Sriperumbudur, Chennai. The big investment project devised by the South Korean auto firm will produce diesel engines and also include setting up of a state-of-the-art press shop as well. It has also been revealed that HMIL is going to sign a Memorandum of Understanding (MoU) with the Tamil Nadu state government on November 5, 2012.

HMIL is the country's largest exporter of passenger cars and operates two world class car manufacturing units on the Indian turf, both of which boasts off an annual production output close to 630,000 units per year. The company has also affirmed that it will share detailed expansive plans of its future projects regarding the domestic market with the officials of Tamil Nadu government.

Expressing his opinion on new project and signing of MoU between the company and Tamil Nadu government, Bo Shin Seo, Managing Director (MD), HMIL, said, "The investment will help us meet the growing demand of diesel vehicles in India and reduce the waiting period on our popular models." The South Korean auto major has affirmed that the upcoming Chennai based engine assembling plant will create more than 500 new employment opportunities, which will be availed by Indian people. Further, the new production unit is believed to help HMIL towards providing the domestic consumers with more diesel powered vehicles across various segments.

Reportedly, HMIL had been on a wide scale lookout for a decent location for its upcoming diesel engine manufacturing unit, but has now ultimately decided to remain at its present facility. The new plant is anticipated to produce close to 3 lac diesel engines per year, which will be used up entirely for the Indian auto market. The company is expected to utilise the new diesel motors on its popular premium hatchback i20 and the recently facelifted Verna Fluidic sedan.