India Getting Ready for Another Nano Incident with Hyundai in Tamil Nadu

author image Satish Kalepu
Thursday 30 April 2009, 00:00 AM

Hyundai is India’s largest car exporter and the second largest car manufacturer. It has its production plant near Chennai and used Chennai Port for exports of its small cars from India. The company had earlier declared that it will make India as its exports hub for small cars. However, the company is now forced to look at another manufacturing unit outside India.

Hyundai Motors India had been making request to the Indian government to protect the interest of the exporters. Dwindling rupee value against dollar and lack of electricity supply in the state of Tamil Nadu are two of the major factors that have forced Hyundai to seek a manufacturing unit outside India.

Hyundai i20 has been recently launched and has become instant success. The company needs to increase its production capacity to meet the growing demands from the domestic as well as the overseas market. In wake of current scenario in the state which not only includes poor power supply and dollar fluctuations but also poor export incentive to the industry and labour problem, Hyundai is looking for other options.

In the present scenario when the governments are looking at corporate to make investments in state and create fresh jobs, Tamil Nadu state government looks quite complacent about the issue.

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