Hyundai Motors - the South Korean manufacturer has announced an investment of Rs 400 crores in the course of three years in order to set-up a new diesel engine manufacturing unit in India.The all new unit will have a manufacturing capacity of 1.5 lakh diesel engines annually.Hyundai Motors has not finalized the location of the unit. According to a popular belief the unit will be set up on a site near their unit in Chennai.
Hyundai Motors is India`s second largest car manufacturer that already has two manufacturing units in Chennai. Both the units manufacture petrol engines and Hyundai imports diesel engines for Verna and i20 from their units abroad.
Speaking on the launch of the diesel manufacturing unit, Hyundai Motors MD & CEO, Mr. H W Park said, “The feasibility study for the diesel engine plant has been completed and we will announce the location in the next few months. The plant is proposed to have an annual installed capacity of 1.5 lakh units.
Next year, we are increasing our capacity to 6.7 lakh units from 6.3 lakh units by only increasing the efficiency and de-bottlenecking of operation. It will cost us negligible investment. In 2011, we will launch model across all segments and this will be manufactured locally here.”
Hyundai India head, Mr Arvind Saxena said, “This year, we are expecting to sell 6.0 lakh units, of which 3.56 lakh cars will come from the domestic market. We are expecting 4 lakh units from the domestic market next year and we will direct some of our exports to India. We have sacrificed our export volume this year also due to very high growth in the domestic market.”
Once the new unit is setup by 2013-14, Hyundai will manufacture 1.1L, 1.4L and 1.6L diesel hearts in India.
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