Hyundai to sign agreement with Tamil Nadu govt for Rs 70-bn investment

Hyundai Motor India will increase its production capacity by 100,000 units

Hyundai Motor India Ltd (HMIL), part of Korean auto major Hyundai Motor, is set to sign a memorandum of understanding (MoU) with the Tamil Nadu Government to invest Rs 70 billion in the state.  

Y K Koo, managing director and chief executive officer, together with B C Datta, vice-president (corporate affairs), and N Ramesh, assistant vice-president (finance), of Hyundai Motor India Limited on Monday met Tamil Nadu Chief Minister Edapaddi K Palaniswamy in Chennai.    

"This Rs 70 billion project means increased production capacity, new model launch and powertrain, altogether. We have the MoU signing in January with Tamil Nadu Government," the Tamil Nadu Government's official release stated, quoting Hyundai officials.  

The company will increase its production capacity by another 100,000 units, including 50,000 completely knocked down (CKD) units. It also plans to start manufacturing electric vehicles in the state within three years.      

Datta said that the purpose of the meeting was to meet the chief minister, explain the new investments to him, and seek government support through tax incentive, power, water, and transportation, among other things.  

He said that at present, the capacity of the company's plant was 700,000 units per annum and that this would be expanded to 800,000 units, including 50,000 CKD units and another 50,000 completely built-up units. The proposed investment also includes the development of electric vehicles.

The additional investment will create 700 new jobs, he added.