Hyundai to Set Up Production Plants in India

The Indian market seems to be following the same path as China, as the country is registering an impressive amount of interest from almost any carmaker that means something in the industry. After other big names confirmed their intentions to either set up production facilities in the country or expand their local business, Hyundai also expressed its plan to invest in the local business and create additional factories to help it in this regard.

The South Korean manufacturer has already submitted an investment proposal to the Tamil Nadu government, The Economic Times reported today, while a Memorandum of Understanding (MoU) is very likely to be signed in the near future.

"Hyundai has submitted a proposal to invest Rs 1,500 crore for setting up plants to make diesel engines and auto components. We are looking into it and soon an MoU to this effect will be signed by the government with Hyundai," Rajeev Ranjan, principal secretary of industries department, was quoted as saying.

Hyundai is also looking to invest $4 million in a plant supposed to roll out 600,000 units per year. A second factory, likely to build parts or engines, could be built in either Tamil Nadu or Andhra Pradesh.

“Although we have been providing our products to clients in India for the last four years, the setting up of this manufacturing unit will strengthen our position in the country," H.S. Lheem, President and CEO of Hyundai WIA, said in a statement. “India is fast emerging as the global hub for the automotive industry and the new plant in Tamil Nadu will help in catering to the growing demands of this industry."