The South Korean auto giant Hyundai has proposed a fresh investment of Rs 1,500 crore in the state of Tamil Nadu. A senior official of the company stated on Friday that a Memorandum of Understanding (MoU) will soon be signed with the state government. It would be the third expansion project for Hyundai in the state.
Speaking to the media persons, Mr. Rajeev Ranjan, principal secretary of industries department, said, Hyundai India 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 a MoU to this effect will be signed by the government with Hyundai." He was speaking on the sidelines of the 'Sustaining Manufacturing Leadership of Tamil Nadu', which was organized by the Confederation of Indian Industry (CII).
At present, the company has two car plants at Irrungattukottai near Chennai with a combined annual production capacity of 600,000 units.
Meanwhile, the car maker is also mulling to establish a diesel engine manufacturing unit in the Indian market with an investment of Rs 500 crore. The new diesel engine plant will enable the company to enhance the localization level in its diesel run car models like Hyundai i20 and Verna Transform. Currently, the company imports diesel engine for these cars from its base plant in South Korea.
