Tamilnadu To See An Investment From Hyundai

By By: Vicky.in

Published: Thursday, January 13, 2011, 15:45 [IST]

The growing auto industry in India has sharpened the continued investment from many players who want either to establish or expand their activities. In a bid to fill the void left by any competitors, the companies vie with each other in sharing the market at any cost. Hyundai Motor India, has its base in Chennai and now it is on the verge of expanding its activities further at a greater level. To begin with, the company will invest Rs1500 crore for the expansion activity and has placed its proposal to the local government in this regard. According to the State Industries Secretary the company had earlier extended its staunch to invest Rs500 crore for expansion of diesel engine facility. The move from Hyundai to increase the investment is to take advantage of the incentives offered by the Tamilnadu Government.

The company intends to secure the maximum incentives through strong investments for which the government offers incentives at freewill. The company is on negotiations with the government officials for the past one month.Though no clear picture about the proposal could be got, it is learnt that Hyundai is likely to expand its production line and further infrastructure. The government secretary said that the discussions between the officials of the company and the government have been concluded and a final picture would evolve in a week"s time. Hyundai is the India"s top most exporter of passenger car and its operations are based near Chennai where it has its facility to yield an annual production of 6 lakh units. The company is the second largest in India with export volume of 40% of its net production being export to 120 countries of the world. Hyundai has proposed the expansion spree to increase its production volume to million annual units.

Article Published On: Thursday, January 13, 2011, 14:28 [IST]

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