Hyundai, the South Korean automobile group has presented a Rs.1,500 crore new investment offer to the Tamil Nadu government and a Memorandum of Understanding (MoU) will soon be signed.The momentum towards a diesel engine plant in India is increasing now as companies are now launching diesel variants. At present the diesel engines for Hyundai’s small cars are imported.
‘Hyundai has submitted a proposal to invest Rs.1, 500 crore for setting up plants to make diesel engines and auto components. We are looking into it and soon a MoU to this effect will be signed by the government with Hyundai,’ Rajeev Ranjan, principal secretary of industries department, briefed reporters.
Speaking to reporters on the margins of the summit on ‘Sustaining Manufacturing Leadership of Tamil Nadu’, organized by the Confederation of Indian Industry (CII), Ranjan said the proposed investment will be the third expansion project for Hyundai in the state.
The investment proposal has come at a time when the Tamil Nadu government is planning to announce a new policy governing the auto sector – vehicle and component manufacturers. There have also been reports of Hyundai Motor looking outside Tamil Nadu for expansion as it may not find sufficient space at its current location.
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