Hyundai Motor India Ltd (HMIL) will spend about Rs 7,000 crore on its Tamil Nadu facility, as India's second-largest car maker plans to expand its production capacity, make powertrains, launch new models and roll out electric vehicles, said a top company official here.
Officials of HMIL, wholly owned subsidiary of Hyundai Motor Company, Seoul, led by its Managing Director and Chief Executive Officer Y.K. Koo on Monday met Tamil Nadu Chief Minister K.Palaniswami here.
Speaking to reporters after the meeting, Koo said the company plans to increase the production capacity by another 100,000 units, of which 50,000 will be completely-built units (CBU) and 50,000 will be completely knocked-down (CKD) units for exports. It also plans to make 10 new models between including electric vehicles by 2025.
Currently, HMIL, has a total manufacturing capacity of about 700,000 units a year at its Irungattukottai plant near here.
Koo said the company has requested the state government to give tax incentives and ensure power and water supplies.
According to him, the company will produce more than 10 models, including electric vehicles, imported in CKD form in the first stage and later start manufacturing the same within three years.
"We have the MoU (Memorandum of Understanding) signing in January (during the Global Investors Meet) with the Tamil Nadu Government," Koo said.
According to B.C. Dutta, Vice President, Corporate Affairs at HMIL, the fresh investment would create about 700 new jobs.
HMIL currently retails nine models across the country. It also exports its vehicles to around 87 countries, including Africa, Middle East, Latin America, Australia and the Asia Pacific.
According to a Hindu Business Line report, Hyundai will be shipping CKDs, instead of CBUs to a few select markets where the tax is higher for CBUs. As a result of this, CKD exports will increase, enabling the company to produce more to meet domestic market.