NEW DELHI: Hyundai Motor India, the wholly-owned subsidiary of the world's fourth-largest carmaker, Hyundai Motor Company ( HMC )), will set up a greenfield plant.
The company will spend Rs 400 crore to build the 1.5 lakh diesel engine plant, hoping to cater to the rising requirements from domestic market. The plant's location, however, is not finalised. The company's two car manufacturing plants are located in Chennai.
"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 ," said HW Park, MD, Hyundai Motor India .
The company, which sells diesel models for its i20 hatchback and other bigger cars, currently imports the engines from South Korea. Hyundai Motors is also looking for a third car plant in India to meet the growing demand. It is awaiting final nod from its parent .
The company has already increased the allocation to the domestic market to 65% for calendar year 2011, up from the 3.56 lakh cars it sold in India, aggregating 60% of its total year production . "We have witnessed 24% growth in the Indian market even as exports at 2.47 lakh cars were down by 8.5% in 2010 calendar year," Hyundai's director (marketing & sales) Arvind Saxena said.
It also plans to roll out its new small car (which will be smaller than its current compact model Santro) 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," Mr Park said.
ET
The company will spend Rs 400 crore to build the 1.5 lakh diesel engine plant, hoping to cater to the rising requirements from domestic market. The plant's location, however, is not finalised. The company's two car manufacturing plants are located in Chennai.
"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 ," said HW Park, MD, Hyundai Motor India .
The company, which sells diesel models for its i20 hatchback and other bigger cars, currently imports the engines from South Korea. Hyundai Motors is also looking for a third car plant in India to meet the growing demand. It is awaiting final nod from its parent .
The company has already increased the allocation to the domestic market to 65% for calendar year 2011, up from the 3.56 lakh cars it sold in India, aggregating 60% of its total year production . "We have witnessed 24% growth in the Indian market even as exports at 2.47 lakh cars were down by 8.5% in 2010 calendar year," Hyundai's director (marketing & sales) Arvind Saxena said.
It also plans to roll out its new small car (which will be smaller than its current compact model Santro) 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," Mr Park said.
ET
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