The Hindu Business Line : Hyundai plans to set up LCV plant at Pune

New plant
For Chakan district, the Hyundai move is a feather in its cap, as this would be the second new automobile plant in the district.
Hyundai's decision to venture into the LCV market with a one-tonne load carrier is based on a one-year market study that showcased the Tata Ace's success story.

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Mumbai March 4 Hyundai Motor Corporation, Korea, plans to set up a light commercial vehicle (LCV) manufacturing plant in India. The company is understood to have chosen Chakan in Pune as the location for the new plant.

According to sources close to the development, Maharashtra Industrial Development Corporation has agreed to allot about 700 acres to the Korean company for its new plant in India. An MoU between the company and the State Government is expected to be signed soon.

Senior Hyundai officials were in Mumbai last week to discuss the new manufacturing facility. At the new facility, the company would make one-tonne load carriers primarily targeted against the Tata Ace model, which has already made its mark in the LCV segment. The company may also set up a powertrain (engine and gearbox) plant at Chakan, as part of its indigenisation programme.

When contacted, a company spokesperson said he was not aware of any such development. But sources familiar with the development said there have been discussions between the State Government and the company on the proposed project.

Though the details are yet to be known, an auto industry analyst said the investment could be over Rs 1,000 crore.

Hyundai's decision to invest in Maharashtra comes as a surprise as the company already has its passenger car manufacturing facility in Tamil Nadu.

For Chakan district, the Hyundai move is a feather in its cap, as this would be the second new automobile plant in the district. German automaker Volkswagen announced in November 2006, its decision to set up an Rs 1,500-crore plant on a 500-acre plot in Chakan

Hyundai's decision to venture into the LCV market with a one-tonne load carrier is based on a one-year market study that showcased the Tata Ace's success story. Besides Hyundai, there are several players such as Hindustan Motors, Bajaj Auto and TVS Motor Company that are eyeing this segment. According to the official Hyundai Web site, the company has no product offering in the one-tonne load carrier.

Attractive pricing

Hyundai is expected to offer the one-tonne carrier at an attractive price. For this, the company may go in for high level of indigenisation, including manufacturing of powertrain locally.

Incidentally, International Truck and Engine Corporation, the US truck manufacturer that has recently inked a joint venture with Mahindra & Mahindra for making medium and heavy commercial vehicle, has plans to set up a powertrain facility for the domestic and overseas markets.

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