Hyundai Motor India Limited (HMIL) has concluded plans to increase its passenger vehicle production capacity to eight lakh units from seven lakh at its Sriperumbudur factory, near Chennai.
According to Hyundai, the proposed capacity expansion is expected to generate 700 jobs.
Already, top officials of HMIL including YK Koo, Managing Director and CEO; BC Datta, Vice-President (Corporate Affairs); and N Ramesh, Assistant Vice-President (Finance), recently met the Chief Minister Edappadi K Palaniswami and sought the State government’s support for the expansion.
A memorandum of understanding is expected to be signed during the State government’s second edition of Global Investors Meet (GIM), which is to be held during January 23-24 next year in Chennai.
A statement quoted Koo as saying HMIL officials met the Chief Minister in his office and promised to increase production capacity by another 100,000 units including 50,000 CKD (completely knocked down) units.
HMIL officials also sought incentives along with support in the areas of power, water and transport.
The statement explained that Hyundai will be shipping CKDs to some select markets instead of CBUs due to higher tax for CBUs in those export markets. Since CKD exports will increase, the company will have space for higher production that can be used to meet the domestic demand.
At the Sriperumbudur factory, Hyundai will produce more than 10 models including electric vehicles (on the CKD mode in the initial stage).