Hyundai Motor India will be signing a memorandum of understanding with the Government of Tamil Nadu on the 5th November 2012. Through this MoU, Hyundai Motors India, a subsidiary of Hyundai Motor Company, Korea, will be investing $300 million in a Press and Engine Shop at their plant in Sriperumbudur in Chennai. Through this investment, more diesel options will be available to customers, something which buyers in India are showing more preference towards in recent times. The facility will also help in reducing waiting periods.
The new plant will open doors to greater employment opportunities. About 500 new vacancies will be created in addition to a large number of indirect employment opportunities. Hyundai Motor India Limited said that the investment will be for setting up world class engine plant and new press shop besides other investments in new models.
Hyundai Motors have two car plants in Irrungattukottai with a total capacity to produce around 630,000 units per annum. The new engine plant and other facilities will be set up within the premises of HMIL. The company has not yet revealed what all engines will be manufactured at this plant but it is expected that a 1.2 liter could be the first. Hyundai may use this engine on its i10 hatchback. Presently Hyundai only offers diesel engines on their i20, Verna, Elantra and Santa Fe but with increased demand it is expected to expand their portfolio to 5 diesel cars by the middle of this decade