The Hindu Business Line : Hyundai plans new engine plant, R&D centre in India

Hyundai Motor Company said on Wednesday it will set up an engine and transmission plant and a research centre in India, in addition to its second automobile-manufacturing factory due to come up by October 2007.

"The setting up of the second plant, establishing the new R&D centre, will increase the production as well as sales of Hyundai Motor India and also change the face of the company in India making it now a comprehensive automotive manufacturer. This investment will take the Indian automotive industry a giant step forward," a company statement quoted Mr Chung Mong Koo, Chairman and CEO of Hyundai Motor Company (HMC) following his meeting with the President, Mr A.P.J. Kalam, and the Prime Minister, Dr Manmohan Singh. HMC, South Korea's largest car manufacturer owns Hyundai Motor India Ltd (HMIL).

HMC said it would finalise the investment amount and the timeframe for the engine plant and research facilities after Mr Chung's trip to India, which ends on Thursday. The announcement comes a day after HMC said it would complete building its second Indian plant by October 2007. The new factory, with an annual capacity of three lakh vehicles, will be built next to Hyundai's existing facility outside Chennai. It will be used to produce a new compact car model, in addition to the existing Santro model.

In his meeting with Mr Kalam and Dr Singh, the Hyundai chief discussed the growing Indian automotive market and shared Hyundai's comprehensive investment plans for India, the statement said. Commenting on the Indian automotive industry Mr Chung said, "The natural advantages of India, with its large consumer base offers a huge potential market, advanced IT technology, young workforce and relatively low labour cost, is expected to propel the automotive industry to new heights."

Mr Chung has also sought support from the Government for export incentives. He also requested for the early completion of the construction of Chennai-Bangalore highway. Talking on the infrastructure needs, he discussed the possibility for a railway connection to SIPCOT, which is expected to assist Hyundai in improving business logistics in the State. He has also asked for a "car-port" in Chennai and a railway connection to the facility, the statement said.

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