South Korean auto major Hyundai Motor Company announced a fresh investment of $300 million (Rs 1600 crore) for a new engine plant and a press shop at its manufacturing facility in Sriperumbudur near Chennai. Hyundai Motor India (HMIL) already has two manufacturing plants with a total capacity to produce around 630,000 units per annum. The company is all set to sign a memorandum of understanding (MoU) with the Tamil Nadu government on November 5.
HMILÃ¢â‚¬â„¢s Managing Director Bo Shin Seo said, "The investment will help us meet the growing demand of diesel vehicles in India and reduce the waiting period on our popular models." According to the company statement, the new investment would create direct employment opportunity for 500 persons and help Hyundai to offer its customers more diesel options across segments.
The company had been eyeing several locations for a new facility to make diesel engines for the domestic market and recently decided to stay put at the current factory. It may go for at least three lakh diesel engines capacity for the Indian market.