Hyundai plans 2nd plant in Chennai
Hyundai will set up a second engine and transmission plant in Chennai in two years time.india Updated: May 05, 2006 18:24 IST
Korean car major Hyundai said on Friday that it will set up a second engine and transmission plant in Chennai in two years time, which could entail an investment of about $600 million, and will hire 800 people for its R&D to be located at Hyderabad.
"In view of our vision to make India an export hub for compact cars we will definitely need a new engine and transmission facility as our production in India increases," Hyundai Motor India Ltd Managing Director and CEO HS Lheem said.
He said the company was in the process of increasing its production, which would touch overall capacity of 600,000 cars once the second assembly units goes on-stream by 2007.
"We already have space reserved for it (engine and transmission plant) near our current second assembly facility at Chennai," he said.
Asked about the investments, Lheem said the company had not finalised on it, but "generally it needs huge investment and on an average setting up such a new units would require around $600 million".
On the research and development centre to be developed in Hyderabad he said, "In the next three four months a final decision is expected as we have already had talks with the Andhra Pradesh government and have seen some locations at Hyderabad".
"We will hire 800 people for this facility, who will be involved in computer aided design (CAD) and CAD analysis," he added.