Hyundai to invest 400 crore for diesel engine plant

Hyundai Motor India, one of the prominent name in the world of automobiles, is planing to make a huge investment of Rs. 400 crore on a greenfield plant. Hyundai Motor India is a fully owned subsidy of Hyundai Motor Company (HMC), the fourth largest car manufacturer on globe.

A 1.5 lakh diesel engine is planned by the company where a total amount of Rs 400 crore will be spent. The major purpose behind establishing the diesel engine plant is to cater the demand which is increasings at an exponential rate. For now the company has not announced the location of this plant but soon company will reveal the details. At present the company has two plants, used for car manufacturing situated in Chennai.

Addressing the big announcement, Mr. HW Park who is the MD in Hyundai Motor India commented that the company is working hard to increase the localised content in the cars used for Domestic market and with this the company is establishing the diesel engine manufacturing plant so that company can employ these diesel engines in present and future cars. He also said that Hyundai Motor India is trying to minimize the exports from and channelise the production in domestic market itself.

The allocation of domestic market by the company has increased by striking 65% for this year 2011. the company has shown a growth of 24% in the Indian Auto market apart from the fact that the exports crippled fown by 8.5% in the year 2010 with a figure of 2.47 lakh units. The fact was revealed by the director of marketing & sales, Mr Arvind Saxena Hyundai Motor India is also planning to bring a small car in the Indian Auto market which will be smaller than its existing Hyundai Santro. The production of this small car will be done at the Chennai plant. The company officials have claimed this car to be the smallest in its portfolio.

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