The Hindu Business Line : Hyundai plans second engine, transmission plant in India

Hyundai Motor India Ltd is 16 months from creating capacity to manufacture 6 lakh cars. This would help the Korean company compete for the largest carmaker tag in India, currently enjoyed by Maruti.

The company is investing about $500 million in its second plant in Chennai, while its suppliers are investing another $100 million to increase the capacity from 3 lakh to 6 lakh cars.

The company is working out a multi-pronged approach marked by a slew of launches across user segments; increasing its range of diesel cars in the country; and setting up an R&D centre in Hyderabad. It is evaluating options for another engine and transmission plant in the country.

The Managing Director of Hyundai Motor India, Mr Heung Soo Lheem said that the company is at an advanced stage of rolling out the Verna. "In our effort to cater to larger segments, we expect to broaden the diesel car offering in the country and soon. We would power the Sonata with a CRDI engine, and we are in the process of rolling out a smaller diesel engine, possibly 1,200 cc," he said.

Speaking to newspersons at Care Hospital here on Thursday, Mr Lheem said, "The proposed engine and transmission plant would be in addition to the one in Chennai. We have not yet decided on the location of this plant."

Referring to the proposed R&D centre in Hyderabad, Mr Lheem said the company R&D President, Mr L.H. Soon had visited Hyderabad about two weeks ago and decided to set up a centre. It would focus on computer-aided design and engineering.

Auto policy

Asked to comment on the auto policy and whether Hyundai plans to custom design some of its cars to suit the policy framework, Mr Lheem said "the policy in effect favoured Maruti against the interests of carmakers like Hyundai. This is unfortunate. If the policy aimed at making India an export hub, they should have made it more appropriate.

"Of the 3 lakh cars we make in India, we export about one lakh to about 55 countries. And, if the policy was keen on encouraging carmakers to make India an export hub, they should not have restricted it to certain specifications," he said.