Hyundai Motors to invest Rs 1,500 crore in Tamil Nadu

Hyundai Motors, the South Korean auto giant has announced investment of Rs 1,500 crore in Tamil Nadu. A top executive official from the company quoted on Friday 21st January that a new Memorandum of Understanding (MoU) is expected to be stamped with the officials of the state government. After the company signs this MoU it will be the third plant towards expansion for the South Korean Indian arm in Tamil Nadu.

Mr. Rajeev Ranjan, the principal secretary of industries department, in conversation with the media said that Hyundai Indian has put across a proposal for investing Rs 1,500 crore for establishing a manufacturing unit for producing automotive parts and diesel mill. He further said that the government is considering the proposal and in sometime the state government will stamp on the MoU with the immediate effect with Hyundai. Mr Ranjan revealed this on the 'Sustaining Manufacturing Leadership of Tamil Nadu', organized by Confederation of Indian Industry (CII).

Currently, Hyundai Motors India has two car manufacturing units at Irrungattukottai nearby Chennai which is affixed with yearly capacity of 600,000 cars.

The auto mobile manufacturer is also planning to set up a diesel mill production plant for the Indian auto market which will include an investment of Rs 500 crore. As per the sources it has been disclosed that the new diesel mill unit will help the auto company to increase the local production of its diesel powertrian for its car models such as the hatchback Hyundai i20 and the sedan Hyundai Verna Transform. While, for now Hyundai ships the diesel powertrains for its cars from the manufacturing unit based in South Korea.

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