Tuesday, December 28, 2010

Hyundai to set up diesel engine plant in Gujarat

India's second largest carmaker Hyundai Motors,world's fourth-largest carmaker, Hyundai Motor Company ( HMC )), has shown interest in setting up a manufacturing unit in Gujarat.The company's two car manufacturing plants are allready located in Chennai.

Hyundai Motor Company will spend Rs 400 crore over the next three years to build the 1.5 lakh diesel engine plant, hoping to cater to the rising requirements from domestic market.The plant is expected to go on stream by 2013-14.Hyundai Motors is also looking for a third car plant in India to meet the growing demand.The company has already increased the allocation to the domestic market to 65% for calendar year 2011, up from the 3.56 lakh cars sold in India, aggregating 60% of its total year production.

HW Park, MD, Hyundai Motor India said, plant's location, however, is not finalised ,"While we are channelising more production to India and cutting down exports, the new diesel engines would be fitted into our existing and future cars as local customers are gradually preferring diesel over petrol ,".

Hyundai also plans to roll out its new small car from the Chennai plant. The small car will be the smallest model from Hyundai's global line-up and India would be one of its lead markets.

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