According to a recent just-auto report, Hyundai is in the process of finalizing another major expansion plan worth INR1.5bn (around US$333m). “Hyundai would make the fresh investment in a diesel engine plant in Tamil Nadu,” said industries secretary Rajeev Ranjan.
The carmaker want to expand it manufacturing facilities, installing one production line and other other related infrastructure. Its plant in Sriperumbudur, about 30km (20 miles) west of Chennai, already offers production capabilities for 600,000 units annually, making it the second largest car manufacturer in India.
The is being submitted to the state government, hoping for incentives before giving the go-ahead to the investment.
Last year, Honda’s facilities produced 7.8 percent more, 603,819 units a year compared with 559,880 in 2009. Domestic sales jumped 23.1% to 356,717 units in versus 289,863 in 2009. It’s not all good news, as overseas sales declined to 247,102 units from 270,017 in 2009, mostly dew to the European scrappage schemes coming to an end. Honda’s Indian-built entry level models were in particular demand, thanks to their low pricetags.
Hyundai Motor India Limited was formed on 6 May 1996 by the Korean Hyundai Motor Company. Their first car, the Santro, was launched in 23 September 1998, proving a great success. Within a few months of its creation became the second largest automobile manufacturer and the largest automobile exporter in India.
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