After Nano, Modi to drive Hyundai to Guj

After Nano, Modi to drive Hyundai to Guj

 

India's second largest carmaker Hyundai Motors has evinced interest in setting up a manufacturing facility in Gujarat, and its officials have visited a site at Dholera near here, which was suggested by the state officials.

The Korean carmaker may well have succumbed to the corporate charm of Gujarat Chief Minister Narendra Modi whose no-nonsense approach in his industrial policy has offered great opportunities to companies.

"A delegation from Hyundai Motors have visited a site in Dohlera 10 days ago as suggested by our department for their new plant," a top industry department official said on the condition of anonymity.

"After the site visit they have shown interest in setting up the plant here, but nothing is final yet," officials said.

The company officials who had visited Dholera will now be submitting its recommendations to the company board. Its board will be taking a final decision in this regard, he said.

They might also be exploring options in other states for setting up a manufacturing plant, he further said.

Dholera, is a special investment region (SIR) in the state spread across 80,000 hectares of land and falls near the Delhi-Mumbai Industrial Corridor (DMIC). It is located just 90 kms from the city where the state government has decided to set up second international airport of the state also.

Hyundai Motors had announced that it will invest Rs 400 crore over the next three years to set up a diesel engine manufacturing plant in India with an installed capacity of 1.5 lakh units per annum. The plant is expected to go on stream by 2013-14.

Presently, the company imports its diesel engines from Korea for its models such as 'i20' and 'Verna'. With this proposed plant it will not have to import engines.

Hyundai Motors already has two manufacturing plants in India located at Sriperumputhur in state of Tamil Nadu, where it is looking to expand its production capacity by next year.

The company also has plans to roll out three new models in 2011. It had sold 5.6 lakh units in 2009 and is targeting to sell 6.3 lakh units in 2011.

Recently, Car maker Ford had consulted the Gujarat officials to set up its second manufacturing facility in India, as it gears up to introduce eight new products by 2015.

Gujarat government aims to make the state as a favourable destination for the car makers, after Tata's relocated its Nano plant from Singur in Kolkata to Sanand near here in 2008.

Source: Indian Express