Hyundai Motors India Ltd. (HMIL), a subsidiary of South Korean auto giant Hyundai, has announced that it will invest Rs 1,500 crores in its Chennai manufacturing unit, in a bid to enhance the manufacturing capacity of this facility. The massive capacity expansion has been planned-up in the wake of skyrocketing demand for cars in the Indian market.
Last month, the company had announced to set-up a diesel engine manufacturing plant in the country with an annual capacity of 1.5 lakh units. In a statement given to media at that time, Hyundai India president HW Park had said, "This plant should be ready by the second half of 2013 and will churn out 1.1L, 1.4L and 1.6L engines. The diesel market in India is growing rapidly and we hope to strap these engines on our various models as production starts,"
Moreover, the company is developing a new 800cc small car that will be rolled-out in the Indian market anytime around early next year or by the end of this year. The car is expected to be shelved in the price segment of sub Rs 2 lakh where it will be taking on with the likes of Tata Nano and Maruti Alto.
Hyundai is currently the largest car exporter and the second largest passenger car maker in the Indian market.
