Hyundai Motors to sign MoU worth Rs 7,000 Cr with TN Govt

Hyundai | Headquarters: Seoul, South Korea (Photo: Reuters)

Automobile major Hyundai Motor India (HMIL) would sign a MoU with the Tamil Nadu government in January 2019 to take up Rs 7,000 crore expansion work at its facility, a top official said.

The management of Hyundai Motor India, led by its Managing Director and CEO, Y K Koo, vice-president (corporate affairs), B C Datta, assistant vice-president (Finance) N Ramesh called on Chief Minister K Palaniswami at the Secretariat and had a brief interaction with him.

Later, talking to reporters, Datta said the chief minister had assured them that the government would conisder their request for providing them tax incentives for the expansion work.

He said HMIL would sign a Memorandum of Understanding with the state government at the Global Investors Meet scheduled to be held in January 2019.

"This Rs 7,000 crore project means increasing production capacity, new model launches and powertrains. We have the MoU signing in January with government", he said.

With the new investments, the production capacity (at the two manufacturing facilities in Sriperumbudur) would increase to eight lakh units a year from the present seven lakh units, he said.

"Next year, we will also introduce a new electric vehicle", he said. Nearly 700 new jobs would be created after the expansion, he added.

HMIL, a wholly owned subsidiary of Hyundai Motor Company, Seoul, retails nine models across the country.

The company also exports its vehicles to around 87 countries, inclduding Africa, the Middle East, Latin America, Australia and the Asia Pacific.