The country’s second-largest passenger car-maker, Hyundai Motor India Ltd (HMIL) on Monday said it will invest R400 crore in a 150,000 unit-per-annum diesel engine plant that will begin operations in the next 3 years.
The firm currently imports its diesel engines from Korea for cars like i20 and Verna.
The location for the plant will be finalised over the next 3 months, HMIL managing director and CEO HW Park said.
“We will make all our diesel engines including 1.1-, 1.4- and 1.6-litre specifications,” he said. “We will also set up one more press shop in our Chennai plant, that will enable us to produce a total 6.7 lakh cars per annum.”
HMIL will launch at least three new cars in 2011. A new car, smaller than the Santro being developed in Korea, will hit the roads in 2012.
“That car will be our smallest but it will not be a cheap car,” Park said. “It will be cheaper than the Santro but only just. We expect it will sell as well as the Santro and i10.”