Commercial production at second engine plant from Hyundai India began its production. It had announced last year that it shall soon set up an engine and transmission plant in India with a research centre. It spent US$421 million to set up the new production facility which has enhanced company's capacity to produce 570,000 units from 320,000. It shall also complete manufacturing its second assembly plant near Chennai by early next year.
Hyundai India is India's second largest auto maker and plans to make India as the largest manufacturing global hub for its small car production as well as engine production for its models across the world. Its Chennai plant capacity has already doubled the company's capacity to 600,000 units a year. Hyundai is expanding overseas furiously to avoid labour strikes and currency fluctuation problems in its home country.
"With the new second engine plant, we will reinforce our role in Hyundai's drive for small cars," said Lim Heung-soo, head of Hyundai Motor India Ltd. These engines would be lined up in Hyundai's small cars like i10 and i30.
