Hyundai India to set up engine plant
The South Korean car maker is expected to announce this week it will set up an engine and transmission plant in India.india Updated: Sep 24, 2006 23:31 IST
Hyundai Motor Co is expected to announce this week it will set up an engine and transmission plant in India, a source close to the company said on Monday.
"A decision has been made to set up a new engine and transmission plant ... the details will be finalised in a few days' time," the source said, declining to say what the plant's capacity will be or when it will begin operations.
Some local news reports indicated the plant is likely to have an annual capacity of 150,000-300,000 units and require an investment of about $500 million.
South Korea's top auto maker started making cars in India eight years ago, having invested $650 million in a 300,000-units-a-year plant outside the southern city of Chennai.
It is now building a $500-million factory at the same site with the same capacity. The new car plant will start operations in October 2007.
Hyundai—India's second-biggest car maker after Suzuki Motor Corp's Maruti Udyog Ltd —expects its sales to reach 300,000 units in 2008, for a quarter of the market, up from its current share of about 18 per cent.